Summary of the week 13
Producers still maintain that they are sold out for the coming weeks, although there are more and more offers. At the same time, these offers are closer to 2.50 EUR/kg than 2.40 EUR/kg EXW.
The interest in whey permeate and lactose is not decreasing. This is mainly due to the fact that the producers sold their quantities directly to China. As the demand for WPC is extremely high (mainly due to imports from India) – some quantities of permeate should appear on the market soon.
Quite a significant price disproportion between the markets. Just before Easter in Germany, quotations for Gouda/Edam dropped to around 3.00 EUR/kg EXW. This caused an increased interest and absorption of surplus quantities. In Poland the demand is more consistent and thus price stays at the level of 3.10 EUR/kg.
Italian producers are noting the biggest increases in cheese production among European manufacturers. The demand is significant, yet changed from cheaper cheeses used in Horeca to more expensive ones used at home. Cheese exports are expected to be at delay due to the recent blockage of the Suez Canal.
Last week we noticed a slight rebound in butter prices after a temporary correction. Producers raised prices quite quickly to around 4 – 4.05 EUR/kg EXW. German producers are sold out for the next month, although they are probably getting ready and trying to build the price of butter before the next negotiations with retail chains. Butter cubes are in demand due to another lockdowns.
Market participants across Europe expect butter prices to go up in the near future. Orders for block butter should soon go up. A lot of interest in AMF. Producers (outside the UK) offer goods in the area of 5.10 – 5.15 EUR/kg for the first-quality, exportable goods.
Milk intake in Europe is gradually increasing. Price of cream strengthened and stay and this level to the end of the week. SMC stays stable regarding both quantitation and quantities. SWC also constant. Skimmed and whole milk got slightly lower than week before. Overall, last week was quite calm in this department.