Summary of the week 27
Sales of sliced cheese are growing, but supply hardly matches the demand. Horeca is not up and running yet, but the amount of product intake is growing. The levels are surely lower than before the pandemic. Although there are no major changes in production considering the previous weeks, the price seems to pick up.
Butter price is on an upward trend. Butter cubes demand is higher than this time, in previous years, as more customers stayed home. It led to higher interest in cubes, rather than in blocks. It can also be attributed to the fact that cream price is high, and producers might prefer to sell it this way. New applications for PSA will be accepted, and countries with the most butter are Netherlands, Germany, and Ireland.
Although seasonal milk production is declining, it still remains higher than at the same time, last year. It is not supposed to change unless the feed price goes up and the rain stops.
SMP price is on a small decline and the market is lulled as EU buyers are rather contracted for Q3. Some producers make spot transactions as they now have time to do it. Contracts for Q4 are to be made after the summer break. Germany and the Netherlands are the top participants in the PSA for SMP. It is worth noting that no more applications will be accepted. FCMP quantities keep up with the light demand. The whey market is also calm. Production, sales, and negotiation for Q4 take place at a peaceful pace.