Inside Milk
Butter market is calming down again
For a short period of time, the combination of butter and skimmed milk powder yielded the highest valorisation. However, that came to an end in week 24. Once again, cheese (combined with whey) takes the lead.
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The overheated butter market has slowly calmed down somewhat, but the question is for how long. In mid-June, the market had a turning point and prices started to fall. Buyers kept waiting and more supply of cream yielded a drastic change up in the sentiment.
In previous years, week 29 proved to be the turning point for cream. It means that the price may have bottomed out at around €5,90 per kilo of finished work. It is also taken into account that buyers (earlier than in other years) are once again stirring the market. This is to prevent a repeat of 1 year earlier.
Milk fat remains in demand
By this developments, in combination with lower levels, the pressure on fat remains. Cheese still obtains the most milk fat from the market. At the beginning of July, the German stock market is already trading at the top for Gouda at €3,20 per kilo. On the other hand, prices below €3 are made in the spot market. It is not clear where the difference comes from.
An exciting period is approaching for protein. The next tender of intervention powder is coming, and what will it yield?
This article is part of the recently published Milk & Feed Pro Trend Report, which also focuses on the fertilizer market, interest rate market and feed market. Click here to read the Trend Report.