Summary of the week 20 (dairy)
The next tender, ONIL Algeria makes producers dream of prices above 2.65 EUR/kg EXW. The quantities offered by the producers are really low. One of the largest producers in Western Europe claims that it has a lower SMP production year-on-year of more than 7-8%. The demand from China is not declining, what drives prices up. FCMP stable. Each producer of WPC – mainly of 80% instants – can sleep peacefully. The price is built from week to week and end customers are able to accept new higher prices much faster than it is in the case of, for example, butter or SMP.
Everyone is waiting for the full reopening of Horeca, which should result in increased interest in cheeses, yet the prices are still steady. There is an increased number of inquiries for Q3 and Q4 deliveries. Cagliata is slightly up.
Another week of strengthening of cream resulted in a slight increase in the price of butter production. The cost is approximately 3.94 EUR/kg EXW PL. German producers keep the minimum price at EUR 4/kg EXW DE. Dutch butter is hard to buy below 4.15 EUR/kg EXW NL. The interest from end-users is growing. We can see that as more and more contracts for Q3 and Q4 are being closed. AMF wanted.
Peak of milk collection got delayed by the cold weather across Europe. Moreover, we can already see that there will be less milk that a year before. Prices of liquids were rather stable except for cream, that straightened last week. SWC was also steady, SMC went a bit down, but then bounced back to the previous levels at the end of the week.