Analysis Cheese
Cheese prices are under serious pressure
The good flow in which the cheese prices were is over. The DCA foil cheese quotations for Gouda and Edam show a significant decline this week and further reductions are likely.
Cheese prices were clearly on the rise in May, but the opposite is visible in June. The DCA quotation for Gouda even passed the €3 per kilo mark in the second week of May, which is a good price level from a historical perspective. However, from that point on, sentiment turned. Prices have already shown some hairline cracks in recent weeks and this week the pressure is seriously building.
Stiff sales
European cheese sales are not going smoothly, various exporters have reported. This is despite the fact that cheese prices are competitive compared to other exporters. Sales within Europe are also slow, which means that stocks at various cheese producers are building up. The market is currently being "disturbed" by traders who have taken positions in the rising market and are now trying to close them.
The cheese stocks are certainly not excessive, but they are building up. Various parties have stated that a lot of milk has been processed into cheese in recent weeks. Due to the rapidly falling milk fat prices, this led to the best valorization of raw milk.
Falling prices
All in all, sentiment on the cheese market is negative at the moment. The DCA foil cheese quotation for Gouda is therefore also falling this week by €0,05 to €2,87 per kilo. The quotation for Edam is down by €0,07 to €2,78 per kilo.
This article is part of the subscription Boerenbusiness Milk & Feed Pro† In the coming period you can check the weekly cheese analysis of Boerenbusiness read for free for a limited time.
Wouter Job
© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.
