Summary of the week 21 (dairy)
Another tender for ONIL Algeria contributed to the price increase once again. The number of inquires for SMP is very satisfying. Prices on the spot are around 2.60-2.63 EUR/kg EXW. The availability for spot purchasing is low. For the following months we are approaching the level of 2.70 EUR/kg EXW, although this has not yet been achieved. Prices of FCMP went slightly up. Most supply is utilised within the EU. There is not too much pressure, so the quotations are not expected to change dramatically.
The interest in WPC is not decreasing. The producers are in a very comfortable situation – most of the goods are sold out for the next months at quite high prices. Will we see 8 EUR/kg EXW soon? It’s very likely.
We are facing quite a peaceful period when it comes to cheese trading. After a few weeks of hope, the number of inquires for cheese is not as high as it was predicted to be during loosening of restrictions. As usual, the situation of producers is saved by retail chains. End users are not eager to accept high Cagliata prices offered by producers.
The price of butter in PL from fresh cream slightly exceeded the level of 4 EUR/kg EXW. German butter is offered above 4.05 EUR/kg EXW DE. The tender for German discounters finished at 4.10 EUR, which is 16 cents higher than previously. In the Netherlands the offers are already at 4.10 EUR/kg EXW and the demand is not increasing. There are signals of revival and increased interest from food wholesalers and Horeca suppliers in Western Europe.
Cream and SMC went up last week. In some European countries we are still before the peak of milk collection. It is very likely that the influx will be higher in upcoming weeks. Prices of raw and skimmed milk are steadily elevated.