Dairy trade is still in holiday mode

The dairy trade is still recovering from the holidays. In other words, the mood is relatively calm. The period between Christmas and New Year always causes logistical 'problems' and this year was no different.

Room price is picking up again
However, the loss of processing days is passé, as a result of which demand from the processing industry is cautiously picking up again. This is especially true for cream. The DCA room quotation has risen this week by €0,25 to €3,95 per kilo, climbing out of a trough that started at the end of 2019. Further upside potential seems limited, because butter prices are currently moving stable between €3,50 and €3,60 per kilo.  

powder market
On the protein side, we see that the price of skimmed milk concentrate is slightly under pressure. The DCA quotation decreases by €0,02 to €1,98 per kilo. This is due to hitches in the skimmed milk powder market. There are noises that the powder stocks have grown a bit. In addition, European exporters have a competitive disadvantage on the world market. Here the prices (about €2,55 per kilo) are higher than in the United States and New Zealand, for example.

Spot milk
The DCA spot milk quotes seem to be moving steadily. However, there was considerable price pressure between Christmas and New Year, partly because relatively large volumes were offered from France at dump prices. In the meantime, prices are picking up again, but that does not alter the fact that the quotations for the Netherlands and Northern Germany are slightly correcting as a result. The market is expected to change direction next week. 

View the latest liquid dairy quotes here 
View the latest cheese quotations here