Inside Milk
Dairy market can be summed up in 1 word
There are few price movements in the dairy market, causing the DCA quotations to shift sideways. On balance, however, the market feels a bit more stable.
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The term 'boring' describes the mood on the dairy market. Due to the increasing seasonal milk supply, buyers can sit back and relax in the knowledge that the supply is likely to become wider and wider. The demand for skimmed milk powder and cream is increasing somewhat, but this does not lead to higher prices.
Cheese stocks not plentiful
The DCA cream price remains at €4.650 per tonne, ex-factory. During the week prices fluctuate between €4.600 and €4.700 per tonne, but it may not have a big name. Cheese prices are also moving mainly stable. Although a relatively large amount of milk flows into the cheese bin, this does not put pressure on cheese prices. This is because the stocks are not very large.
Due to increasing demand from outside Europe, the price of skimmed milk powder is becoming more stable again. Although the DairyNL quotation fell this week, the expectation is that the market can now cautiously look upwards again. This also supports the DCA quotation for skimmed milk concentrate, which remains at €1.350 per tonne.
Higher GDT
The higher prices for butter, cheddar and skimmed milk powder, which were achieved this week at the Global Dairy Trade (GDT) in New Zealand, have little or no effect on the European dairy quotation (yet). However, it does ensure that the bottom under the European dairy market feels somewhat firmer.