Room price shows an unprecedented stable picture

De Limited Availability raw milk means that the traded volumes are also relatively small this week. The DCA quotation for raw milk remains at €36,50 per 100 kilos (at 4,4% fat, delivered). The quotations for Northern and Southern Germany increase by €0,50 to €36 and €37,50 per 100 kilos (at 3,7% fat, delivered).

Processors in Germany had to make every effort to meet retail demand, causing prices to rise. However, it is expected that the availability of milk will increase again, because retail demand is likely to weaken from next week. The availability of milk also increases in the Netherlands as Christmas approaches. Historically, this has meant falling prices. 

Stable 
De DCA cream price has been stable for weeks, supported by production before Christmas. Such a stable period did not often occur in the past. However, in the long term there is increasing uncertainty; especially now that the butter price on the Global Dairy Trade (GDT) in New Zealand is high this week had to hand in.

In addition, the New Zealand butter price has been significantly below European prices since April, which is detrimental to the competitive position. This difference has widened further this week.

Between June and September, milk supplies in New Zealand were approximately 6% higher than in the same period last year. The increase is due to the rapid grass growth as a result of the wet weather. The ample supply in New Zealand could negatively affect fat prices in the first half of 2019, given that the 'kiwis' serve the same sales markets as European dairy exporters.

View the latest quotes here.