Summary of the week 36
As we predicted, SMP skyrocketed on the last GDT.
Many Business Partners came back to us for offers sent a few days ago at the level of 2.10 – 2.12 EUR / kg with the desire to buy at this price. Of course, we are already higher and closer to the level of 2.15 – 2.18 EUR / kg. Most buyers are slowly getting used to those prices, bearing in mind that they missed their opportunities. We don’t predict a swing, so don’t repeat their mistakes!
FCMP is stable. Importing countries did not put their offers due to the weak relation between Euro and Dollar. The rise in SWP is blocked by the fear of ASF roaring in Europe. We hope that situation will soon get under control.
Strong interest in Cagliata in the second half of the week. Some manufacturers say they are close to selling at 3 EUR / kg EXW – while buyers are not ready for this level yet. As usual in Cagliata, there are two worlds – the question is who will last this game longer.
As for Gouda and Edam – most producers say they are contracted for the next two months. Nonetheless, the spot inquires are not a common thing in those days.
There was less interest in butter last week. Many people are still concerned about the amount of butter stored in PSA (Private Storage). The situation might also be connected to the fact, that participants are waiting for the German retailer butter tender. It will surely show the price direction.
Furthermore, in retail chains, there is a race for the lowest price per cube to attract customers. The price is well below the production costs (approx. Production from cream costs about PLN 3.40 / 200g cube. Discounted price for a cube is below 3 PLN / 200g cube). However, the butter is still undervalued regarding the cream.
Cream stayed at a fixed price level until Thursday. On Thursday, a slight correction began and the price of the cream fell to around 4.50 EUR / kg EXW. The price of milk is in the brackets of 0.33 EUR / kg EXW HU to 0.34 EUR / kg DAP IT. Skimmed milk is somewhere between 0.20 – 0.21 EUR / kg EXW CZ/DE.
SMC went up – now it can be found only above 2 EUR. The general demand for liquids is high. There is no problem to sell the product in the domestic market in Germany and Poland.