DCA cream price manages to recover

The reason for the revival in the cream market must be sought in Germany. Grocery store Aldi provides monthly purchasing prices for various dairy products, including butter. Various parties have announced that the price for February has been set at €4,48 per kilo. Although this is lower than in January, this price level is not necessarily disappointing.

Aldi's purchasing policy partly determines the sentiment on the European dairy market and has therefore created more certainty in milk fat.

Room prices are rising again
Cream prices are picking up again. The DCA cream price will increase this week by €150 to €4.850 per tonne. The prices are interesting for butter producers and that creates some demand. However, a lot of butter is currently frozen and demand from the fresh segment is quite weak. On balance, the cream trade is relatively thin.

What is striking is that the spot milk price does not move with the cream price but is stable. The DCA quotation for raw milk in the Netherlands (at 4,4% fat, delivered) remains at €34 per 100 kilos for the second week in a row. Prices in Germany are also stable. Although the milk supply increases seasonally, Dutch processors indicate that the supply is certainly not ample. However, the fat and protein contents are high. In Germany, milk supply last week was 1,5% below the 2018 level.

French offer
The price of skimmed milk powder appears to be leveling off, after the strong recovery in recent weeks. The ZuivelNL quotation increased this week by €4 to €195 per kilo, but that is based on business done in the previous week. Due to the leveling off of powder prices, the DCA quotation for skimmed milk concentrate (-€70 to €1.530 per tonne) is taking a step back. Cheese prices are changing relatively stable.

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