Summary of the week 9
Most of SMP stocks are already sold out, but the deliveries are made on time. Contracts are made for Q2 2021. Buyers with short notice have to accept higher prices. The prices of FCMP has firmed as the product noted an increase on the last GDT event. The demand is steady and export inquires are constantly incoming.
There is a slight slowdown in whey, but on the other hand its availability is quite low. Prices are still well above 1000 EUR/MT. The interest in WPC80 is not decreasing, which only arouses the appetite of producers who are starting to talk about prices above 5500 EUR/MT for goods with the addition of lecithin (Instant).
Price of Dutch-type and Mozzarella cheeses continue to strengthen on a weekly basis. Even though offers for April and May are quite high, it does no longer scare away buyers.
Lots of inquiries from outside the EU. It seems that production is also increasing week by week – maybe this is the reason for a slight slowdown in SWP. Most of the extra milk is going into manufacturing of cheese. Cagliata’s April price went up as well.
Butter prices have seen a rather expected rise. Butter production from cream – if any free one is available on the market – is at around 4-4.05 EUR/kg EXW. Many producers withdrew from offering blocks, which only fuelled the price race. Some claim that if this trend continues, we will reach the level of 4.50 EUR/kg EXW within two weeks. Moreover, the price difference between Oceania and Europe drives the interest of export Customers back to the latter.
Price of cream has skyrocketed. At the beginning of the week we heard offers at 4.45-4.50. Now it is above the level of 4.80 EUR/kg. It has driven the appetite for butter even further.
It had an influence on raw milk and the price went up. On the other hand, SMC is getting cheaper. The weather seems to be getting nicer and so will the raw material intake.