Traders on the foil cheese spot market operate in a calm market these days. Sufficient volume is present in the market in itself, but the current prices do not sufficiently invite buyers to trade. The DCA quotations for foil cheese are making both a slight move up and down.
The DCA quotation for Gouda this week amounts to €28 per kilo ex-works, which is a decrease of €2,87 compared to the previous week. For Edam, the DCA quote is €0,01 per kilo ex works, which is an increase of €2,79. In the past two weeks, Edam's listing has increased by a total of €0,03.
Although the heat wave still plagues parts of Europe, it has no surprising effects on milk supply. As a result, the foil cheese lacks incentives to really get moving in the short term. It is also expected to remain calm in the coming week. The market may drop slightly, but - traders expect - not much and not for long.
Fat to cheese
For the long term, in the first and second quarter of 2020, fat prices appear to be low. As a result, there is a possibility that dairy processors choose to send more fat towards the cheese, so that more cheese comes onto the market. This expectation is now putting pressure on the cheese price in the long term.
In terms of price, the demand for the current third and fourth quarter is approximately at the level of DCA's current spot quotation for foil cheese. Prices to which the providers do not directly respond. So they have to find each other again.
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