127th edition of Foodcom DAIRY Newsletter

Welcome back after the Easter break! The market is back on its regular track, and as usual we bring you the latest news from around the world on the dairy market.

Powders

The low availability of milk and the high valorization of cream result in limited SMP production. There is a temporary stagnation in demand. Mainly caused by Ramadan and lockdown in China.

FCMP is going up. Prices for dairy products in Europe have reached levels that may influence the reduction of dairy exports outside the EU due to a lack of price competitiveness with products from the US/Oceania. WMP index went down 4.4% on the last GDT event with an average price of US$4,207/MT

SWP market is still looking stable but tight. Buyers are unable to get Q3 volumes. Compared to the previous GDT listing, the volume offered now is lower.

Cheese

There is strong demand for Q2 and Q3 for cheeses, but suppliers are hesitant to offer quantities in the current market. Sellers are hoping to benefit from further price increases which seems inevitable given that most of the action in Europe is in a very tight spot market.
Cheese manufacturers are beginning to enter plant-based markets by leveraging their sales structures. Will this situation prevail?

Butter

Butter suppliers have no need to sell at this time because they believe that prices will continue to rise. On the other hand, buyers are reluctant to pay the current price, as they think it will go down. Who will be right? We will see, but Q3 is not widely offered yet. However, supply is unlikely to be able to meet demand. This results in a general belief that current prices will not change. In yesterday’s GDT event, the butter index went down 3.7%.

Liquids

In general, there is no milk collection larger than in previous weeks. The demand for cream has increased since before Easter. SMC is relatively stable. Last week prices were around 3600-3700 EUR/MT. Similarly in the case of whey concentrate, prices are fairly stable. All in all, a very quiet week for liquids; let’s see what happens after Easter.