Inside: Milk & Food
French milk supply turns spot market light red
DCA spot prices for raw milk, butter and skimmed milk concentrate take a step back this week, week 14. Ample milk supply in France is causing some pressure in the Netherlands and Germany. Just before Easter, the cream price also weakens somewhat. An analysis for Milk & Feed subscribers.
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The increase in production in France affects the spot markets in other European countries, including the Netherlands. The cheapest milk is for sale in France, which puts pressure on raw milk prices in both the Netherlands and Germany. The French production increase is related to the weather and the expiration of the European milk reduction plan. French dairy farmers have fully cooperated in this. Buyers report that they have purchased milk on the French market for approximately 26 to 27 euros per 100 kilos of milk.
31,50
euro
The quotation for spot milk in Northern Germany therefore takes a step back to 29,00 euros per 100 kilos of milk. South Germany's price decreases by 0,50 euros and amounts to 30,00 euros per 100 kilos of milk. In the Netherlands, the DCA spot quotation for raw milk is 31,50 euros per 100 kilos of milk. That is one euro less than last week.
The traders report that there is a wide supply of raw milk and that the milk is not always easy to place. Various processors are struggling with maintenance work and malfunctions, which means that less milk can be collected and processed.
Room price drops
The cream price already weakened slightly last week, week 13. This is after the market for cream has only increased since February. This week the quotation drops again to exactly 5.000 euros per tonne. That has everything to do with the weakening Easter demand.
The DCA cream price was still 5.175 euros per tonne last week. Nevertheless, traders expect that the price will not fall much further and that the demand for butterfat will remain at the same level. However, if consumer demand is disappointing, the market will suffer from relatively large inventory for some time.
Skimmed milk concentrate stable
The market for skimmed milk concentrate is downright stable. Compared to last week, the DCA quotation still shows a small minus of 1,9 percent and amounts to 1.300 euros per tonne. A few traders mention that there is still a demand for skimmed milk concentrate in Eastern Europe.
Cheese also stable
The cheese market still benefits from Easter. Both demand from European retail and sales outside Europe are causing inventories to shrink. Gouda 45 was trading stable in Germany this week at 2.950 to 3.200 euros per tonne. Prices are expected to maintain this level, even after Easter.