Butter, cheese and milk powder creep up

At the rate at which cheese prices are rising, riders in the Tour de France would jokingly be unable to obtain a yellow jersey. However, there is certainly an increasing trend. The cheese market is benefiting from tight supplies, partly due to the heat period in August. The cheese on the shelf is often very young and therefore cannot yet be delivered. In the meantime, the quotations of Edam and Gouda are on their way to €2.900, which is not a bad price level considering the circumstances (corona).

Milk powder benefits from improved sales
The skimmed milk powder market also does not suffer from large inventories. After a poor period, prices are on the rise again, thanks to improved sales on the world market. The DCA quotation increases this week by €50 to €2.130 per tonne. Based on the futures on the EEX in Leipzig, the physical market has even more upside potential.

Butter further up
The butter market has also made progress in the past week, unhindered by the stocks still in the private storage scheme. The quotation will increase this week by €45 to €3.450 per tonne. This means that butter is no longer far below the level before the corona crisis. In the longer term, there are doubts as to whether the higher butter prices can be sustained.

Liquid takes back gas
The liquid dairy market slows down after the heat period. The price of spot milk will drop this week by €1 to €38 per 100 kilos. The prices of skimmed milk concentrate are also dropping slightly, while the high cream prices can still be maintained. Further corrections are not unlikely, due to the imbalance with fixed dairy prices. 

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