Summary of the last week
We see an upward trend in interest in both SMP and BMP. An increased number of calls from both exporters and traders encouraged producers to drive up prices. We can be sure that end-user’s stocks were not sufficient as we hear offers at 2.20 EUR/kg for Q1 and Q2 in Western Europe. At the beginning of the week, lucky ones could find SMP in Poland at 2,10. It disappeared immediately.
There is a renewed commotion in FFMP from export destinations. The interest of the producers of feed for whey permeate and lactose is not decreasing either. Food quality permeate and lactose also surged.
The interest in cheese is not diminishing. We see some consolidation in hard-type cheese. It might be caused by the fact that many buyers were stocking with caution before Christmas as they feared further COVID-19 restrictions. Prices for cheese in Germany and the Netherlands (who have been one of the cheapest suppliers so far) seem to be recovering.
We still hear a lot of significant amounts of free Mozzarella is available, yet the number of inquires is increasing.
Despite the usual trend we have been observing in last years, the interest from retail chains is not decreasing this year. Butter cubes go like hotcakes 🙂
Customers are still looking for cheaper alternatives in the form of older, frozen butter. PSA quantities are running out. They might come to an end in January/February. The interest in AMF was growing, for both – future contracts and immediate deliveries.
The amount of raw material is systematically rising each week. Cream was traded a bit lower compared to the previous week. Production of fresh butter from cream is at the level of approx. 3.35 EUR/kg EXW. Skim milk in Germany stays around 0.185 – 0.19 EUR/kg EXW DE. There is less SMC on the market than expected, which might have contributed to last week’s SMP price increase. Customers are increasing their purchase prices every day, unable to reserve the desired quantities for powder production.