Inside Milk
Spot milk leaves the valley behind and on its way to 30 euros
As a result, the prices of spot milk have also increased significantly. How come?
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Sentiment on the liquid dairy market has been positive for a few weeks, but the market is now picking up speed. The DCA cream price increases by €684 to €3.963 per tonne. The reason for the rapid price increase is the limited availability of cream. In general, processors are hardly prepared to sell liquid products, which means they have to invest money in relation to the payment prices.
In addition, the seasonal milk supply shows a decline, in combination with the persistent drought, reinforces the good sentiment. For the same reason, the quotation of skimmed milk contract also increases by €421 to €1.821 per tonne. A signal that confidence in the skimmed milk powder market has been considerably restored.
Spot milk in the elevator
The prices of spot milk are on the rise. The DCA quotation for Dutch milk increases by €2,50 to €29,50. The limit of €30 is therefore within reach. German milk is already trading above these levels.
Although the first payment prices also go to dairy farmers for June are still falling, the better sentiment on the dairy market will probably result in a bottom more quickly. Very likely above €30, while recently lower prices were feared.
Click here for an explanation of the DCA quotations (liquid dairy)
Click here for an explanation of the DCA quotations (cheese)