Analysis Cheese
Stable cheese market gets a little bit
The cheese market has turned downwards this week. Sentiment has turned a bit for several reasons. The DCA foil cheese quotations therefore lose.
First of all, at the beginning of this week, a tender was launched by dairy cooperative Arla, and that tender closed lower than market prices. This has created some uncertainty in the cheese market. The parties with positions try to close them in order to avoid a further decline. This creates some supply pressure.
Prices in the physical cheese market are moving downwards. It has been lacking in buying interest for weeks and that is now starting to take its toll. Although the stocks are reportedly not excessive, they are increasing given a lot of milk the cheese tray inflows. This means that cheese producers are less certain at the moment and therefore less firmly committed to stable prices.
Milk supply shows recovery
What plays a role in the background are the low butter price and the relatively cooler summer weather of recent weeks. There is usually a certain correlation between the butter and cheese market; the butter price from ZuivelNL however, has lost considerable ground in recent months.
Milk production is on the decline (after the extreme heat in July), although it is experiencing a seasonal decline. On balance, European member states barely produced in the first 6 months of this year more milk, so that there are no shortages.
Listing down
In short: due to a mixture of factors, cheese prices are moving downwards. The DCA foil cheese quotation therefore decreases by €0,04 to €2,78 per kilo. Edam's quotation fell this week by €0,03 to €2,72 per kilo. The slight downward trend is expected to continue in the short term.
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
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