Inside Milk
Easter puts pressure on DCA quotations for milk and cream
Easter put a lot of pressure on DCA spot quotations for cream and raw milk in the dairy market in week 15. These holidays, including Good Friday, result in a broken week, resulting in fewer sales days available. Cream in particular leaves a firm spring.
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Trade this week is preparing for Good Friday and Easter. Where there are normally 6 to 7 delivery days in 1 trading week, there will be only 4 next week. In addition, buyers have already covered themselves for the holidays well in advance. As a result, demand is quiet this and next week, but sellers are keen to get rid of their offer. This results in lower prices.
This is most noticeable in the prices for cream, because the DCA quotation for cream in week 15 amounts to €4,35 per kilo ex factory. This is €0,30 per kilo lower than 1 week earlier. Room started the week at the spot price of week 14 (€4,65), but then fell rapidly. By the way, the fat is in the corner where the blows fall anyway. Butter sales are disappointing and there is also sufficient stock of cream. Practice shows, given the 5-year average, that cream still has a few difficult weeks before the price can rise again.
Milk from France
Although the DCA spot price for raw milk in the Netherlands 'only' drops by €15 in week 1 to €31 per 100 kilos (at 4,4% fat), the pressure in this thin market is also increasing. This week, especially from France, there is a lot of supply of raw milk, which is finding its way into Northwestern Europe. This causes a large variation in raw milk prices, with a downward trend.
The supply of raw milk from Southern Europe is also felt in Germany. In combination with Easter and Good Friday, which is a public holiday in Germany, this results in spot prices of €29 per 100 kilos for Northern Germany and €29,50 per 100 kilos for Southern Germany (both at 3,7% fat). ). This is respectively €1,50 and €2,50 per 100 kilos lower than the week before.
Skimmed milk concentrate remains intact
The skimmed milk concentrate is the only one that is still somewhat intact this week, in terms of price. The concentrate costs only €10, which gives a DCA spot quotation of €1.340 per tonne of dry matter, ex-factory. This has everything to do with the stable market for skimmed milk powder, which concentrate can benefit from.
The big question is whether the DCA spot quotes will pick up a bit in the coming weeks, or whether they will remain at this low level. In any case, signals are passed on from trade that show light on the horizon.