Inside Milk
Milk protein continues to contract, correction of fat
Price developments on the market show a contradictory picture. Where the price of fat is under pressure, the value of milk protein continues to increase.
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The light for the milk protein is still green; especially because the intervention stock 99% has now been sold. This news further fuels the good sentiment on the powder market, although it is also realized that the powder mountain has not gone up in smoke.
The volumes will probably be brought onto the market by buyers in phases in the coming months. This means that no shortage is expected to occur. At the same time, the demand for milk powder is good; There is particular interest from Asia. Skimmed milk concentrate is in demand to produce milk powder; the DCA quotation therefore increases by €100 to €1.600 per tonne.
Demand is lacking on the fat market
There is a lack of demand on the fat market. Butter producers are therefore building up stocks for delivery later this year. The increasing stocks temper the price forecasts and it is not expected that butter prices will be at their maximum. Cream prices are under pressure this week. The DCA cream price drops by €200 to €4.700 per tonne.
This level charges well to produce butter, so inventories are running high. It is still difficult to say whether cream prices will find a bottom in the short term; Opinions differ on this in the market.
Raw milk quite stable
The trade in raw milk is still described as 'thin', with relatively little volume traded. The quotations for the Dutch market are slightly lower, causing the DCA quotation to drop by €1 to €34 per 100 kilos. The price is also slightly lower in southern Germany. There is no significant price pressure; the correction must be seen in the light of falling fat prices.