Dairy market continues to feel tame

After a turbulent period in the spring, the dairy market has slowly fallen asleep. The prices of almost all manufacturers move in a narrow range and, moreover, do not follow a clear direction. Dairy traders talk about thin trading volumes. Furthermore, trading is limited to the short term. Hardly any business will be done before the fourth quarter. 

In the meantime, stocks in the Private Storage Scheme are steadily increasing. There are now more than 60.000 tons of butter stored and 45.000 tons of cheese. Stocks of skimmed milk powder are more moderate, but have recently passed the 15.000 ton mark. On top of that, there are of course also unregistered stocks, which means that end users can sit back and relax.

Milk powder slowly down
A lack of demand has caused the skimmed milk powder quotation to drop €55 to €2.100 per tonne this week. The prices of whole and whey powder are also dropping somewhat. Cheese prices show a stable to slightly increasing trend, with Gouda's quotation being €2.840 per tonne. This has reversed the dip of the past few weeks. Cheese producers are not yet affected by depressed stocks. And that's something that surprises some traders.

The DCA spot milk quotation remains at €32 per 100 kilos and is therefore in line with the raw material value of milk. The spot milk price is also close to the level of the payment prices, which are increasingly finding a bottom. However, there is no prospect of recovery yet. To achieve this, the tame dairy market must first take its upward path again. 

Click here for explanation of the DCA quotations (liquid) 
Click here for explanation of the DCA quotations (cheese)