Summary of the week 4
Producers are hoping for further increases in SMP, but as for now, the future looks rather stable as inquires for Q2 are mostly covered. The possibility of ONIL tender is another factor that will influence the powder market, as well as the upcoming GDT. Currently, it’s hard to get higher prices for SMP, but we will see when “on hold” mode will end.
However, bids from Europe are still clearly lower than from New Zealand. BMP is often a cheaper alternative for SMP and is also in demand and thus the price is going up.
FCMP is surely and steadily growing.
When it comes to whey powders and whey derivatives prices, they stay still at the already achieved levels. Market participants are looking closely to decide on next moves. Chinese customers made their purchases, what drove the price up. Now the waiting time has commenced and the status quo persists. On the other hand, we see more interest in WPC, producers are lifting the price and declines are not on the horizon.
The prices of cheese are the most consistent. No spectacular increases, but on the other hand prices are not falling. It is an unexpected turn of events, as many thought that the price of cheese would have gone up along with other products. Producers are trying to change this course, but buyers are not ready yet.
We can only say that there are some movements with Cagliata and Mozzarella. In Poland, cheese prices are still much higher than in Western Europe thanks to strong domestic demand.
The butter price is going slightly forward at a steady pace. However, for Q2 and Q3, we can see prices above 3,50 EUR/kg. It is possible that the prices will climb further up, as stocks in PSA are almost finished.
The local demand is significant and we get an increasing amount of inquires from export destinations. Additionally, AMF producers augmented the price of the product.
It’s possible that the increases in liquids are caused by limited raw material intake in Western Europe. Skimmed milk price reflects the situation with SMP. It’s not easy to find quantities of SMC. Even if one succeeds, they won’t be below 2200 EUR/MT of dry matter.
Whey concentrate availability is also scarce. At the beginning of the week, cream was above 4.10 EUR/kg of fat and then climbed up to 4.20 EUR.