Summary of the week 25 (dairy)
We noticed a correction in milk powders. The deliveries of SMP are going smoothly. Some buyers expect the price to go down, but the situation might change. Intra-EU buying for Q3 is more or less done. Quantities left are directed to export destinations. FCMP was a bit lower. Whey is steady. Export interest does not diminish. WPC is still going up.
There is still a good time for Mozzarella and Cagliata. Purchasers from Southern Europe increased their inquires and look for more. Most of the additional milk supply goes into cheese production.
New tender for one of the biggest German discounters finished slightly below the previous one. There are some volumes on stock, but not exceeding current needs. Highest prices can be found in France. Purchasers already bought some volumes for Q3/Q4, but the full demand has not been covered yet. This might be caused by growing amount of warnings issued about fourth wave of coronavirus. Spot transactions are a thing now. We have to wait and see.
Hot weather deepens seasonal declines in raw material collection. Cream was on a rise last week, but buyers and sellers price expectations did not match, and thus the former had to give in. Raw milk production in April was higher compared to the same time last year. China remains an important market for European UHT milk.