Inside Milk
December gets a grip on liquid dairy
Now that the calendar points to December, the broken weeks around Christmas and New Year are getting closer and closer. Liquid dairy prices...
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With 2 full trading weeks ahead of us, the pressure is slowly building up. A significant drop in spot prices for milk, cream and concentrate is normal around the holidays. The DCA spot milk quotation for the Netherlands drops by 50 this week to €34,50 per 100 kilos. The Dutch market seems reasonably balanced. There is more supply pressure in Germany, where prices are falling further.
Due to a lot of French supply, there is also a significant markdown for skimmed milk concentrate, and cream is also under some pressure. The question is how far prices will fall as December progresses. Bargain hunters are reportedly active for cream, which has been overpriced compared to butter for almost the entire year.
Little excitement in solid dairy products
The fixed dairy market moves fairly stable, with little trading activity. This trend is expected to continue in December and the first weeks of January. There is some optimism for milk powder prices further afield, partly thanks to rising oil prices. For cheese and butter, expectations are more moderate as long as the lockdowns remain in force.
Click here for explanation of the DCA quotations (liquid)
Click here for explanation of the DCA quotations (cheese)