Inside Milk
Skimmed milk powder market feels firmer
The situation on the market for skimmed milk powder has improved compared to last week. The upward trend is also continuing in cheese, in contrast to the falling butter price.
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Skimmed milk powder benefits from better sales opportunities on the world market. Thanks to rising prices in New Zealand and the US, the European competitive position has improved, despite the strong euro. All in all, the market feels firmer, especially because trading houses are short. The DCA quotation for skimmed milk powder increases by €30 to €2.180 per tonne. The revival is not so visible with whole and whey powder.
Cheese further up
Cheese prices (Gouda and Edam) seemed to level off last week, but there is still some music in the market. Cheese inventories are low, thanks to strong retail demand. This compensates for lower sales to food service as a result of the corona measures. Because we are in the trough of milk supply, cheese supplies will probably remain tight for the time being. Yet it is doubtful whether the market can break the €3.000 barrier. With an increase of €35 to €2.925 per tonne, the Gouda quotation comes closer.
Butter and cream down
We see the weak trend of recent weeks continuing on the butter market. The quotation drops by €90 to €3.315 per tonne. Butter stocks are described as ample by market parties. This also puts pressure on the DCA cream price, which drops €165 to €4.265 per tonne. This is the lowest level since early August. We do not see any major changes with regard to the raw material value of milk, because at higher cheese and skimmed milk prices we see a declining butter quotation.
Click here for explanation of the DCA quotations (liquid)
Click here for explanation of the DCA quotations (cheese)