Inside: Milk & Food
Room price attracts towards Easter
The price of cream keeps the milk price in March. As Easter approaches, the cream price is gearing up for a climax. For the period after Easter, however, the expectations are promising. That does not bode well for milk prices. An analysis of developments in milk especially for insiders.
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There is a lot of demand for cream this week and the price is taking advantage of this. The price has therefore risen to 5,20 euros per kg ex work. That is a plus of 10 cents compared to last week. As Easter approaches, the demand for cream is building to a peak, due to the delivery obligations outstanding to the retail sector. It is therefore unlikely that the cream price will be able to sustain itself in the longer term.
32
euro
Spot price of milk remains unchanged
Where the price of cream rises, the spot price for milk remains the same. This week the spot price in the Netherlands is 32 euros per 100 kilos. There has been very little trading in recent weeks, but that changed this week. It is noticeable that there is more commotion on the market. However, this does not lead to rising prices. The south of Germany is also unchanged at 31 euros, while the north remains at 30 euros.
Cheese and butter
The cream scenario also plays out, more or less, for butter. There is good demand from the Middle East in mid-March, but this demand is also temporary. This has to do with Eid-al-Fitr, which follows Ramadan. This celebration will not take place until the end of June, but the dairy market is already noticing an emerging demand. Cheese volumes are growing well, but at somewhat disappointing prices.
Demand for milk concentrate is nil
The price of milk concentrate drops by 40 euros to 1.310 euros per tonne. The demand for skimmed milk and milk concentrates is nil. After all, the market is looking for fatty products.
April milk price
Thanks to cream and butter, milk prices remained largely stable in March. This is what is heard from the market. However, it is expected that the price of cream will have to go back in price if demand decreases after Easter. The milk supply will increase in the coming months.
Meanwhile Arla lowered its payout price for April. Dairy traders expect this to influence the milk price that FrieslandCampina will announce on Monday. How the market will develop in the coming months depends largely on the milk supply in neighboring countries such as Germany, France and Poland.