This is our summary of the week 6 on the European dairy market divided into 4 main categories.
SMP feed prices have strengthened a lot, they are now oscillating in the same range as SMP food prices. SMP production seems unprofitable at the moment. SMP food prices remain stable but the product is mainly in the hands of traders. It is predicted, based on the idea of increasing demand for milk, that probably the price of milk protein concentrate should decrease over the next few weeks.
FCMP is currently being manufactured to order. They are produced when a buyer comes along. Prices are stable. Still not everyone has stocked up on product.
SWP prices for food and feed have risen in recent weeks. SWP is holding up solidly still. The general trend is that there is 1.7% less milk in Germany and France based on the same period last year, so SWP prices for the EU are rising and don’t look likely to fall.
Prices for WPC have risen for Q2, we are hearing prices of 11,20 – 11,50EUR/kg. If anyone is looking for a cheaper commodity they can still buy for February from companies who want to cash in their positions and liquidate their inventories. Whey concentrates for drying are expensive, therefore drying costs are also expensive. Many buyers are waiting with their purchases, hoping that prices will drop – but a similar situation was in July-August, and prices did not fall.
Additionally, Protein Isolate cannot be found on the market, prices are super high and availability is limited. No one wants to offer in advance, everyone is afraid that prices will rise even higher – the question is where is the ceiling. Currently, WPI 90 Instant is about 17,85 EUR/kg FCA EU.
Dairy products prices continue to rise, and cheese is not an exception. In Europe, this is mainly due to the continued low supply of products, while the recent sharp price increases have been due to stronger demand over the past few days.
Gouda is seeing more demand, both in the spot market and in Q2. High prices persist. The European market is tight due to increased demand combined with low supply.
Prices for butter have gone up the most, with the lowest offers disappearing from the market last week. Looking at the current butter inquiries from potential customers we assume that not everyone has covered the demand for Q1 hoping that prices will be lower.
In general, there is a high demand for whey butter, which is cheaper than regular butter. Historically the price of butter is very high (the highest historical price was around 7 EUR/kg).
The liquid dairy market was very much in limbo this week, with concentrates prices stealing the show. Prices are too high for powder production, but demand for fresh products seems almost unrestrained. Cream prices rebounded a bit from last week, while raw milk supply remains very tight which leads to higher spot milk prices.