Summary of the week 7
This is our summary of the week 7 on the European dairy market divided into 4 main categories.
We can see a commotion in the SMP department. Contracts for April are already taking place. Feed quality SMP is at the level of 2300 EUR/MT. The market in Europe is quite firm, and buyers from around the World look here for better deals than in Oceania. On GDT the price rose by 0,3% and in Europe, it holds tight. On the last GDT FCMP went up by 4,54%. The upward trend is still on. The interest from European end-users is rising. Moreover, export destinations are looking for shipments. Whey and whey derivatives are also climbing with WPC 80 instant reaching 5500 EUR/MT EXW. China is a big player here. SWP feed grade can be as expensive as 930 EUR/MT. Lactose is also on the increasing side.
The production of cheese is getting more intense. The prices of Gouda and Edam are rather stable. Even though producers were expecting higher prices, the market has re-examined that, and transactions are made 5-10 cents lower. Time will show which party was right and who has to reconsider. Cagliata is slowly rising and we see the increased interest for March, and even for April.
Comparing to the previous week, the price of butter increased. Easter is looming on the horizon and producers must begin shopping soon. The contracting activity is predicted to build up in upcoming weeks and the price will most likely firm up. The price for Q2 is already higher, yet still, buyers are waiting for the German discounter’s move. AMF and frozen butter are being looked for. Butter cubes will keep the price at least at the current level.
For the cream, last week started on a lower note, but the price increased by the end of the week. Most likely, it was caused by high butter prices which were attractive for producers. One should not expect a drop in bids. As the winter is passing by, we expect growth in milk collection in the upcoming weeks. SMC is still at high levels, but the rumor has it that in March and April the price will most likely go down as there will be more supply. Whey concentrate availability has improved as more and more cheese is being produced. That caused a slight decline in price.