Summary of the week 24 (dairy)
This is our summary of the week 24 on the European dairy market divided into 4 main categories.
The SMP price with prompt pick-up has been slightly adjusted. More or less they stayed at the same levels. We heard about prices around 2.52 EUR/kg EXW IE/DE. This is not reflected in new offers from producers who fear (and probably rightly so) the reduced amount of milk caused by heat in Europe. Unconfirmed: ONIL contracted approx. 20-30 thousand tonnes of SMP from the EU – at a price of approx. 2.73 EUR/kg FOB. Such a price would confirm that SMP continues to maintain a fairly high price. FCMP slightly decreased. Whey stable. WPC80 does not slow down.
Last week we saw increased traffic through inquiries from end customers for Cagliata cheese. German producers offer this cheese around 3.20 EUR/kg EXW DE. Slight amounts of this cheese are available in Poland. On the other hand, Dutch-type cheeses, after a moment of growth, returned to levels below 3 EUR/kg EXW DE/NL. There is an increased interest in Mozzarella caused mainly by food service. Cheddar still at high levels. Time will show if there be any price race as many expect.
The last two weeks have been quite quiet when it comes to butter trading. Little interest resulted in a price correction, despite less cream on the market in hot weather. However, it should change soon as the price of cream is going up. Despite the lower availability of the raw material, the producers were forced to offer butter in the block below production costs – in PL it was possible to buy butter below 3.85 EUR/kg EXW PL. We also saw an increased amount of offers for spot transactions compared to the previous week. Not much is offered for Q3, and even if, at much higher prices. AMF slightly cheaper.
Heatwave already had an impact on milk collection. The amount of raw material dropped across Europe. We also have to keep in mind, that we are after the peak and thus the quantities will only be lower. Cream peaked up. SMC rose 150-200 EUR/MT last week which will surely contribute to changes on powders market. SWC is avaible and easy to find on European market.