Analysis Cheese
Whoever still owns cheese has gold in his hands
Cheese is scarce. That's why prices are picking up. Anyone who still has cheese stocks has jokingly said 'gold in their hands'.
Due to the tight stocks and uncovered buyers, cheese prices (Gouda and Edam) have made great strides in recent weeks. The stretch isn't out yet. The parties expect the good sentiment to continue in the coming weeks, although the increases are expected to be more modest.
There is a lot of demand both within and outside Europe. Countries such as the United States and Japan are importing considerably more cheese this year, although the majority of the cheese remains within Europe.
€3 lasts in 2020
The market will probably slow down around Christmas and New Year's Eve. However, a major price correction is not imminent. The stocks are too short for this and the milk supply in many countries is too flat. In addition, butter and skimmed milk powder also provide a good valorization of raw milk. The prices that are now being realized for the first quarter of 2020 are between €3,05 and €3,10 per kilo. Well above the 'limit' of €3.
For now, the market feels solid. The traders who still have stocks have probably taken interesting positions. The DCA quotation for Gouda increases by €0,04 to €3,18 respectively. The price of Edam plus by €0,01 to €3,13 per kilo.
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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