Summary of the week 8
The price of FCMP reflects the rise in fat bids. There was an increased amount of inquires for this product and thus the offers were higher. Because of that, FFMP gained attention. The price of whey is not declining and the interest from China might be a one of the reasons. Other argument confirming this might be the high price of sea transport and thus many Customers want to secure the quantities when it’s possible. Even though there is more SWC on the market, the price of whey powder does not diminish. After this increase, people need a minute to settle down and find their way on the market. Many people start to fear that the price is so high that a sharp drop may occur soon. On the other hand, why should it happen if the raw material availability is limited? The same is true for WPC. WPC80 regular is offered above 5.10 EUR/kg EXW – Instant is approaching the level of 5.70 EUR/kg.
Last week cheese prices also increased. This category firmed up and one has to be quick to secure quantities in good prices. Prices for Gouda hit 3 EUR/kg and higher. For April and May are close to 3.10 EUR/kg. As the interest was bigger, the production was more intense what could be indicated by the amount of whey on the market. The demand is greater and the equilibrium has to be achieved. It should happen as this category was long standing still. Despite the fact that there are large stocks of Mozzarella in every country, the price has also strengthened. It had its influence on Cagliata which price got slightly higher.
At the beginning of the week the situation with butter was rather stable. German butter was at the level of 3.70 EUR/kg EXW with little availability or reluctance to offer. At the same time, Polish butter could be easily bought for 3.60 EUR/kg EXW. It was when the information about German discounter went live (at the level of 3.80-3.85 EUR) the market started to get active. The butter went up and the commotion began. Polish prices hit 3.75 EUR/kg EXW. Dutch are around 3.80/3.85 EUR/kg EWX. Price for the upcoming months also got higher, and be careful, as the quantities are scarce. Keep in mind that the German discounter closed the deal for most likely two months, so the price won’t go below this level. Very high interest in AMF on Q2 and Q3. The prices hit 4.70 – 4.75 EUR/kg DAP.
The cream firmed at the beginning of the week to 4.55 EUR/kg in Poland and Germany. It was mainly due to the new contract for butter cubes in Germany. Availability was limited, and it was hard to convince buyers in the first half of the week of such a price increase. They found out about this on Thursday, when there were no more available quantities. It had an influence on whole milk. In Western Europe, producers lift farm gate milk prices which will translate to higher prices in general. SWC availability was gradually increasing during the week. Growing amount of raw material is going for butter, so we have more skimmed milk on the market and thus the price stays the same at best, but in some cases falls down. In upcoming month, prices of SMC might get a bit lower.