Inside Milk
Overheated listing DCA Room cools down
Liquid dairy prices have clearly moved upwards in recent weeks, but the expected turnaround has arrived. The cream price, in particular, has clearly been marked down this week.
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The day (or in this case, the week) you knew would come has arrived. After a few turbulent weeks, prices for liquid dairy are heading downwards again. The price of cream in particular has taken a hit. This is because demand from the fresh segment is declining.
Still overrated
The DCA room quotation drops by €200 to €4.650 per tonne. This will reduce the price gap with butter. However, a further correction is in the offing, as cream is still approximately €400 overvalued (to be able to produce butter profitably). The producers are therefore waiting to record the volumes.
Although demand for skimmed milk concentrate has declined, the quotation remains stable at €2.150 per tonne. Prices are mainly holding up due to the rising prices for skimmed milk powder, which fluctuate between €2.300 and €2.400 per tonne.
Spot milk seasonal pattern
Spot milk prices in Germany are falling. The quotation in Northern Germany drops by €0,50 to €36 per 100 kilos and the quotation for the south of Germany drops by €2 to €37,50 per 100 kilos. The relatively large decline is because the market receives less support from Italy. The quotation of spot milk for the Netherlands remains stable at €37 per 100 kilos.
Historically, the price reaches its highest level in mid-September, only to drop again in the fourth quarter. A repetition of the seasonal pattern is obvious. This is because spot prices are above the raw material value of raw milk and the seasonal milk supply is slowly picking up again.