Summary of the week 32
The interest in powders increases. The lack of old stocks of SMP and the growing commotion on the market may contribute to further advances. FCMP acts quite stable.
With the decreased cheese production, there is less whey on the market. This and the fact of intensified demand adds up to higher SWP prices.
Many major European producers are getting ready for Algerian tender. This might push buyers to accept higher prices for milk powders.
The demand for cheese is far lower this year than in previous seasons. The lack of a major market player – Italy deepens the problem. There is a little bit more inquires for Cagliata. The producers’ expectations are still 10/15c higher than buyers are willing to pay.
The Dollar/Euro exchange doesn’t aid in exports which are currently on hold.
The cream keeps on holding to high levels and it’s more profitable to sell this product rather than butter. Buyers are looking for cheaper, but older options, yet it’s not an easy job. The quantities of cream available on the market are scarce. Furthermore, if this situation persists, the price of butter should follow the cream.
There are rumors that the new ALDI butter deal will be closed at roundabout 3,60 Euro/kg. If you didn’t buy butter yet, hurry up and don’t waste time…
Even though the consumption declines, raw material prices go up as the weather causes milk shortages in Europe. In addition, the awareness of possible COVID-19 related restrictions drives the prices further up. There is an increasing shortage of whole milk. It also influences the prices of skimmed milk and SMC.
We heard some rumors, that certain producers were forced to withdraw from the previously concluded contracts as quantities collected were insufficient. Moreover, as cheese production declined, whey concentrate is harder to be found. Cream stays on a high level, and there is no sign of upcoming change.