Inside Milk
Cream and butter prices past their peak
Prices for cream and butter have peaked. At the beginning of June, prices will decrease slightly again, under the influence of more supply. However, this is not negative for the valorisation of milk, because the price of protein is gradually increasing. It...
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The prices of skimmed milk concentrate are increasing week after week. As processing space becomes available again and prices for skimmed milk powder increase, the price is approaching the true value of the product. This puts an end to the long period in which concentrate was actually too cheap.
(Text continues below the chart)The price for cream drops in week 24 to just under €7.000 per tonne.
End of record high prices
Due to the increase in protein and the sharp increase in prices for cream and butter, this combination yields the most. It could at the same time mean the end of the exceptionally high prices in fat, because it becomes attractive to produce.
In just a few weeks, the gap between the value of raw milk for cheese and milk for cheese grew powder and butter heavily. Something that means that cheese prices have to move. Logically, processors will shift more milk to the highest-yielding products, which limits the production of other products.
(Text continues below the chart)The price of butter has started a cautious decline.
Only in the second week of June do the higher prices start cheese market to dominate. The spot even mentions €3,20 per kilo for Gouda.
This article is part of the Milk & Feed Pro Trend Report published this week, which also focuses on milk supply, the interest rate market and the phosphate rights trade. Click here to read the Trend Report.