Many expected a correction on GDT – mainly in SMP. In fact, although it fell, it was a smaller decline than everyone expected. The limited supply and increased demand of SMP kept the price where it is now. FCMP is rising thanks to the growing interest from export destinations. BMP is very popular nowadays with prices in the range of 2.18-2.23 EUR/kg EXW. At the same time, you can still buy WPC35 around 2.15-2.20 EUR/kg EXW. Another week of building up the price of SWP, which is now hard to get below 940-950 EUR/MT EXW. The producers are not able to keep up with the demand. End-users that need whey for their production must secure the quantities. The way out is to wait for the seasonal milk collection increases that might drive the cheese production up and thus supply whey.
Gouda and Edam are offered at 2.90 – 2.95 EUR/kg EXW. It is worth noting that in Poland, sales of hard-type cheese in supermarkets, thanks to the pandemic, increased by 14% compared to last year.
Although the Mozzarella market is plentiful of the product, the price increased last week by about 5 cents to the level of 2.75 EUR/kg. Producers of Cagliata would like to raise the March prices by 10 cents, but buyers don’t like that idea. We will see how this will end.
This week we saw a firm increase in the price of butter. Polish butter increased by about 0.10 – 0.15 EUR/kg compared to recent weeks and reached a level above 3.60 EUR/kg EXW on the spot. It may be the effect of empty PSA and/or slow return of HoReCa. For Q2 the prices are as high as 3.70 EUR/kg. It’s getting harder to find larger quantities for March, what confirms the predictions concerning further increases. Market participants expect further growth in the next months, which helps to make fast business decisions. This applies to both domestic and export buyers. It is worth remembering that the butter price in Oceania is high, which will lead some traffic back to Europe. The interest in AMF is rising as well.
On Tuesday, the cream could still be bought at 4.10 – 4.15 EUR/kg EXW. On Wednesday and Thursday prices hit 4.20 – 4.25 EUR/kg EXW.
Whole and skim milk prices are not falling. SMC stays on high grounds. Also, whey concentrates availably is scarce. Short raw material supply influences the production of dairy products. Frosty whether across Europe will keep seasonal increases in milk collection frozen. Extra quantities go into butter and SMP. Cheese is next on the list.