Inside Milk
Dairy trade looking forward to Fonterra auction
The dairy trade is in two minds. On the one hand, the undertone in the market is excellent, partly due to the milk production that is manageable. On the other hand, there are increasing concerns about the Coronavirus…
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By the unrest in China flattens the price of skimmed milk powder. Also the futures contracts on the EEX walking at lower levels. The price of skimmed milk concentrate (as raw material for the powder) will continue to rise this week, but will probably also hit a barrier when the powder price actually drops.
GDT can indicate direction
Traders note that Chinese demand is very tepid, although it is still difficult to estimate what the consequences of the Coronavirus will be in the longer term. The Global Dairy Trade in New Zealand, which will be held next Tuesday, may provide clarity. This dairy auction, organized by Fonterra, is usually dominated by Chinese parties. If these are absent, a significant price correction is likely for various manufacturers.
Butter and cheese prices have not yet been affected by the threat from China. Butter prices are stable at price levels just below €3.600 per tonne. The demand for cream is also not disappointing, causing the DCA quotation to increase by €100 to €4.000 per tonne. Cheese prices maintain their upward trend, prompted by tight supplies. This results in an increase in the DCA foil cheese quotation for Gouda and Edam.
View the latest cheese quotations here.
View the latest liquid dairy quotes here