Inside Milk
Liquid dairy prices hit barrier
On the dairy spot market, liquid dairy remains in particular demand. This has resulted in rising prices for skimmed milk concentrate and cream, although a barrier does appear. Which one is that?
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Due to the holidays (and a Catholic holiday in various parts of Europe), trading is mainly quiet. The necessary volumes were traded at the beginning of the week, but then activities weakened.
Spot prices for raw milk are maintaining levels that are around the prices paid to dairy farmers. For the Netherlands, the DCA quotation for raw milk (at 4,4% fat) remains at €35 per 100 kilos. It should be noted here that relatively little trading takes place. This is because the factories have sufficient processing capacity, partly due to the declining milk supply.
Room prices continue to increase
Cream prices continue to increase. The DCA cream price increases by €50 to €4.000 per tonne. Trading takes place in a fairly wide spread, with both trading above and below the quote. Room is limited in availability and that drives up the price. At the same time, the butter price looks weak, trading around €330 per 100 kilos. This does not support the rising cream price, which is likely to increase resistance.
Skimmed Milk Concentrate
The same goes for skimmed milk concentrate. The DCA quotation rises by €20 to €1.970 per tonne, but there is also trade above €2.000 per tonne. This increase is driven by demand from the fresh segment. However, based on the prices of skimmed milk powder it is overpriced.