Summary of the week 35
SMP is still getting firmer. The holiday season has ended and those, who were waiting for the price drop are now buying ASAP as the demand skyrocketed. The highest prices are reported from Germany, and then France and the Netherlands. Contracts that are already closed for Q4 point that the price will only rise. This reassures producers that keeping up with higher bids is the right move.
FCMP is stable with a slightly increasing tendency. The production in Europe is scheduled and there are not many changes in the eyeshot. Export is not a big thing now, as New Zealand is soon to cherish seasonal peaks.
Whey powders are balanced – on the one hand, we have the showing up cases of ASF in Western Europe, but on the other hand, the supply is lower as is production of cheese. Market participants do not predict much fluctuations in the nearest period.
Price for Gouda/Edam holds on tight. Even though the average price for this moment is 2.90-2.95 EUR/kg, we could hear 3.05 EUR/kg EXW DE/NL.
The low supply of cheeses of 2nd and 3rd grade doesn’t meet the high demand. In general, the already contracted quantities are fulfilled, yet there is no room for additional inquires.
Western Europe is content with higher levels of price for butter. When producing butter from cream, we must take into account the cost of approx. 3.80 – 3.85 EUR / kg EXW. Quite fewer inquiries for fresh butter – players are still looking for bargains and frozen butter, whose price is around 0.20-0.25 EUR / kg lower.
Polish and German retail chains have put butter on sale. The retail price is much lower than the production/purchase price – a 200g cube costs from 2.24 – 2.99 PLN. Well below production costs.
Compared to last year, the raw milk collection is satisfactory and is higher than the three-year average. The available quantities come from Ireland, Poland, Germany, while Baltic States, Slovakia, and Hungary report shortages. No matter how big the supply is, the domestic demand keeps the price high. What is even more heartwarming is that Italy keeps on importing.
Skimmed milk and SMC slid, but the bids are still pricey. The question is the future of exports to Asia and the Middle East – those will influence the price. The cream keeps on climbing relentlessly.