Summary of the week 23 (dairy)
Across Europe SMP price remained at the similar levels. However, we can see that the interest for this product is decreasing. FCMP market is stable. Here and there lower prices can be found. Despite the growing quantities of SWC, the price for whey was steady in the whole Europe last week. The reason for WPC80 price rally in Europe is the strong demand and low stock in the US. We expect the market to remain strong until the end of the year. It is still difficult to predict what will happen in Q1-2022.
Last week, transaction prices for Dutch type cheese were slightly higher than in previous weeks. The same goes for demand. The traffic in contracts was greater than in the previous weeks.
We can see that Horeca is getting active. Dutch cheese prices above 3.10 EUR/kg EXW. Cagliata prices in Poland above 3.12 – 3.14 EUR/kg EXW. The demand is growing for both Cagliata and Mozzarella, while the stocks are not sufficient.
The price of cream this week has been adjusted so that the prices of butter in Poland are around 3.88 – 3.90 EUR/kg EXW PL. On the other hand, the interest and demand for butter cubes from Western Europe does not decrease and the prices for lactic butter do not fall below 4.10 EUR/kg EXW. Sellers don’t want to give in with prices for Q3. Packaged butter is still in demand in Europe. AMF in the UK and Ireland above 5 EUR/kg EXW.
Cream bounced back by the end of a week of decreases. We will see how the situation unfolds in the near future. Milk concentrate gets weaker, which might contribute to the situation in powder department. As mentioned above, there is plenty of SMC at attractive prices. We are after a milk collection peak in Europe. It’s interesting how the future will look like regarding the heatwave predicted by weather forecast.