Inside Milk
Spot milk quotation closes year well above 30 euros
You can almost set the clock to it. As Christmas approaches, the pressure on liquid dairy prices is mounting. This is also the case this year.
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We kick off with the solid dairy market, before highlighting the liquid dairy market. You could conclude that the year will end on a negative note due to the significantly lower Global Dairy Trade (GDT). Milk powder prices in particular took a hit at the auction.
At the same time, the European market has not panicked and we are reporting stable prices for low-fat whey powder prices. Cheese prices (Gouda and Edam) are under some pressure, but butter prices are increasing slightly.
Price pressure on liquid dairy market
There is price pressure on the liquid dairy market, although that is appropriate for this time of year. French processors have been offering relatively large volumes for a few weeks now. In the Netherlands and Germany, the surpluses are not too bad compared to previous years.
The DCA quotation for skimmed milk concentrate is struggling to hold on at €2 per kilo. The seasonal pattern fits seamlessly with the 5-year average. This also applies to the trend shown in the Dutch spot milk quotation, which drops to €33 per 100 kilos.
However, from a historical perspective, this is not a bad level. Prices are expected to correct upwards again in early 2020. The cream price can also probably reverse the downward movement. This week the price drops from €0,16 to €3,70 per kilo. (DCA will not publish dairy quotes in week 52.)