Analysis Cheese
Gouda cheese price weaker again
The undertone in the cheese market currently feels weak. The cash supply of milk makes the buyers sit back and want to wait for the price development before taking a position.
Cheese prices (Gouda and Edam) continue to move downwards, after the market had already been last week tap got† Falling prices reinforce the wait-and-see attitude of buyers. The producers try to hold on to the same prices, but cannot avoid moving with the declining market.
The Gouda DCA foil cheese quotation is therefore falling this week by €0,01 to €2,77 per kilo. The quote for Edam is falling this week by €0,02 to €2,70 per kilo.
Equal European milk supply
The holiday season is now almost over. Nevertheless, market activity hardly increases as a result. This is because many parties have already been covered in the short term. For the somewhat longer term, buyers are hesitant.
Since the milk supply in Europe is the same as last year (and a lot of milk also flows into the cheese trough), the production of cheese will theoretically remain at a minimum level. This is one of the causes of the weaker market.
Stable export
European cheese exports to third markets in the first half of 2019 were the same as last year. In the first months of the year, 424.000 tons were sold in European Member States, which is a fraction more than in 2017 and 2018. The United States, Japan and Switzerland are the 3 most important destinations.
The sales to Japan increased by 6% to 57.000 tons. Thanks to a trade deal, Europe has a competitive advantage over the United States. This advantage will probably (partly) expire soon, as the United States and Japan recently also trade agreement have closed.
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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