Inside Milk
Milk prices maintain stable line
Milk prices are also maintaining the stable line in October, although A-ware and FrieslandCampina, among others, have made small changes. What is also striking is that the prices of spot milk move above the payout prices
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Milk prices have shown a fairly constant trend all year long. The basic milk prices vary roughly between €32 and €35 per 100 kilos. Including all bonuses, these amount to a maximum of €38 per 100 kilos.
FrieslandCampina and A-ware
It is striking that the difference between A-ware and FrieslandCampina has become smaller. In recent months, A-ware has increased more than €0,50, while FrieslandCampina has reduced more than €0,25 in September. The difference between the basic milk price of the processors has therefore become less than €2, but is nevertheless still significant.
Thanks to rising powder and cheese prices, the floor under the milk price has become firmer, but substantial increases are not within reach. The price of butter has fallen too hard for that in the past month.
Spot milk over payout prices
The prices of spot milk have been above €35 per 100 kilos since August and are therefore easily above the payment prices. According to the traders, the volumes traded on the spot market are relatively thin and there are no surpluses.
It must be borne in mind that milk production is on its way to the seasonal trough in September.
This article is part of this week's published Trend report Milk & Feed Pro, which also focuses on the feed market, interest rate market and manure market. Click here to read the Trend Report.