Inside Milk
Cream market lowers spot price of milk
Liquid dairy prices have all fallen. The cream price, in particular, is making a nosedive, which is putting pressure on the spot price of raw milk.
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The expected price correction of the overextended cream price will continue this week. The DCA room quotation drops by €350 to €4.300 per tonne. As the week progressed, interest in cream increased again. As a result, the market forms a bottom. However, various market parties are not certain that cream prices will hold up. Because despite the fact that the ZuivelNL quotation for butter was a plus this week, milk fat is under pressure.
The price of skimmed milk concentrate has also fallen somewhat, despite the fact that the quotation for skimmed milk powder is on the rise. The price drops by €100 to €2.050 per tonne. The availability of product in countries such as France and Germany is the cause of this. This correction stretches the difference with the price of skimmed milk powder somewhat, although these concentrate prices do not allow for profitable drying into milk powder.
Spot price of milk down
The downward movement of cream and concentrate also puts some pressure on the spot prices of raw milk. The DCA quotation in the Netherlands (at 4,4% fat) drops by €1 to €37 per 100 kilos. Prices have also come down in Germany. With the reduction the difference with the payout prizes somewhat smaller to dairy farmers.