Summary of the week 30 (dairy)
This is our summary of the week 30 on the European dairy market divided into 4 main categories.
Despite more inquiries on SMP and a fairly stable price for concentrate, there is still a sense of uncertainty – mainly due to the unpredictability of governments over possible lockdowns in the fall. End users remember last autumn, when they had full stocks of raw material and their production was limited due to the lockdown. After a few, rather calm weeks, new inquires from export destinations are incoming. WPC80 and WPI90 stable.
This is not the best time for cheese. Low interest from buyers – prices around 3 EUR/kg EXW DE/NL. However, the interest in cheese offcuts is not declining.
Due to the increase in the price of cream, the price of butter production in Poland fluctuates at the level of 3.80-3.82 EUR/kg EXW PL and the producers believe that this trend will be maintained. Stocks of frozen butter are high. The demand for butter cubes is steady. However, the interest in AMF has weakened – the situation should change at the end of the month, when Buyers return to their offices and check their stocks.
Prices of raw milk are consolidating across Europe comparing to previous weeks. Producers claim that this will be the trend now. SMC was rising for another week by 50-100 EUR/MT. Diminishing quantities of cream caused a rapid increase in price at the levels of 100-150 EUR/MT. It might have an influence on butter.