Inside: Dairy Market
Sales of milk powder from intervention remain low
The European Union (EU) took a big gamble on the month of February by offering a hefty volume of milk powder from intervention. The good news is that sales were again higher than in the previous month. The bad news is that this is a 4,4% share of the supply.
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The EU managed to sell 4.337 tonnes of skimmed milk powder from intervention in February. This happened at a minimum price of €1.100 per tonne. A total of 99.156 tonnes were offered, which means that 4,4% of the supply has been sold.
Price takes a step back
It is another increase compared to the previous month. For example, only 1.864 tons of milk powder could be sold in January. On the other hand, the lower end of the price was higher at the time, namely €1.190 per tonne. It means that the price has had to take a step back, and that does not bode well for the price movement in the next tender.
As a result of the sale, the volume in intervention drops to 374.240 tons. At this rate, it is Brexit that could provide an interesting twist. After all, the British themselves will then be responsible for the sale of 8.000 tons of milk powder.