Huge interest in SMP. It’s hard to get prices below 2.40 EUR/kg. Manufacturers say that the interest has increased for both spot transactions, as well as from export destinations. It’s safe to claim that big driving factor is the Asia’s intake. It’s hard not to see the activity of feed sector. The demand is expected to get even stronger. Keep in mind that even though producers use free milk to produce extra SMP, the stocks are still low.
FCMP market remains active and its hard to purchase it below 2.85 EUR/kg. There are factors that let us believe that the interest will grow even further, yet buyers are more cautious than with SMP.
SWP also recorded a very significant increase. It is hard to book it below 870 EUR/MT EXW. Q2 talks are already advanced and the orders keep on coming from domestic and export destinations. Good deals for whey for Q1 are gone, and for Q2 they seem to be rare gems.
Even WPC that has lately been in its low began to rebuild its price.
Still significant, but diminishing difference in cheeses between PL and NL/DE. Cheeses in Germany are already offered above EUR 2.85/kg EXW – where just two weeks ago it was possible to get reasonable amounts around EUR 2.75/kg EXW. The interest is greater than expected. However, it comes as no surprise that the biggest demand is in retail department. Despite the fact the food service is mostly limited due to restrictions, the intake persists. It also seems that Mozzarella is rebuilding its price and the level of 2.65 EUR/kg is no longer on the market.
At the beginning of the week, large amounts of butter in Poland were still available at the level of 3.35 EUR/kg EXW. However, with the increase of cream – the price of butter strengthened. Producers were no longer willing to offer fresh butter below 3.50 EUR/kg EXW. Sometime one can find frozen butter at more affordable price. The number of inquirers visibly increased. It is predicted that the price will further firm up. Especially, as the PSA is almost sold out.
In addition, a large increase in GDT was recorded by AMF (+ 17.2%), which could also have a psychological impact on the increase in butter prices.
At the beginning of the week we had a slight slowdown in the price of the cream. A lot of cream in PL was available around 3.95 EUR/kg EXW. From Wednesday, however, the price of cream strengthened and went above 4.10 EUR/kg EXW. The price of butter from such cream is the equivalent of about 3.50 EUR/kg EXW PL. SMC is rising and is now above 2200 EUR/MT of dry matter. Raw and skimmed milk also firmed up. The quantities of SWC and AWC in Europe are diminishing and thus the price of whey powders is increasing.