Summary of the week 37
SMP in Europe is still quite stable, yet end-users are slowly getting used to prices above 2.15 EUR/kg. Producers report some transactions, but many are already contracted up until the end of the year. This and the fact of declining milk production will surely lead to what we hear about Q1 being above 2.20 EUR/kg. We had more inquires from export destinations.
There was a correction of the prices of lactose and permeate. The bids are about 40 EUR lower compared to previous weeks.
CMP is steady in general. Price fluctuations seem not to be a thing to worry about.
There was a slight increase in whey prices at the bottom range, but the top stays still. Some changes in price are predicted by the end of the year.
Due to the jam in FFMP for export destinations producers temporarily closed the production lines. However, we can see now a surge of inquiries for that product from such destinations as Central or South Africa.
Despite little interest in 15 kg blocks cheese, prices remain high – about 3 EUR/kg EXW. This is probably due to a shift in production capacity from cheeses to powders, which reduced cheese availability. The difference in price expectations between producers and buyers is around 10 cents. Many purchasers refer to traders who might still have cheese below 3 EUR/kg somewhere in a warehouse.
Cheeses for melting and shredding are still in demand, but finding them is not an easy task. Retail increased its intake, while HoReCa remains stable.
While it might seem like the Mozzarella season is over, we still see a lot of interest in Cagliata.
In anticipation of the new tender of the German retailer, the price of butter slightly recovered to around 3.40 – 3.45 EUR/kg. We will know the decision on the new price of the cube in the upcoming days. We heard rumors, that most of the participants expect the prices on the same level as we have right now for the current month.
Polish retail chains are still fighting for the customer by offering butter cube prices below the market. Today we saw a bargain offer in which a kilogram of butter on a store shelf costs approx. EUR 2.80/kg.
The reason why butter remains undervalued compared to cream may be the amounts released from private storage, which effectively block price increases.
There will be less and less of the raw material on the market. In the first part of the week, the price of the cream oscillated around 4.20 – 4.25 EUR/kg EXW. Nevertheless, these quantities were quickly taken off et and the price rebounded to around EUR 4.30/kg in the second half of the week. SMC was stable.