Inside Milk
Will the dairy market recover after this Easter weekend?
It was a quiet week for the dairy market. Demand has fallen, but the supply is also limited. Due to the broken week related to Easter, less volumes were traded than usual. How are prices moving this week and what are the expectations for after Easter?
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The dairy market has benefited significantly from the run-up to Easter. Due to the lockdown, the catering industry is still closed, but demand for fat remained good and the price of cream and butter was therefore able to make considerable progress. Last week the trading was largely done and the 'Easter peak' was over. Due to lower demand, the quotations had to lose ground, but this week there has been a slight recovery.
The DCA quotation for cream increases this week by €90 to €4.665 per tonne. The price found its way back up again, especially at the beginning of the week. This moderated during the week. The butter price, on the other hand, has recovered during the week and is therefore rising by €135 to €4.060 per tonne. The current price level of both cream and butter remains far ahead of last year.
Milk still scarce
Milk is still described as scarce by dairy traders. The milk supply in France and Germany is still lagging behind and there is still no question of a so-called 'flush'. Dutch spot milk is therefore trading at an average of €36 per 100 kilos for this week. In Germany the price varies between €34,50 and €36 per 100 kilos.
The supply is not extensive, but the demand is currently not great in the run-up to the Easter weekend. The cheese markets are quite stable, with the quotations of Gouda and Edam taking a small step back due to lower demand. Buyers are waiting for falling prices that they expect due to the flush.
What does the market do after Easter?
Due to the corona crisis and various circumstances, it is a special year. Expectations for the near future therefore depend on various factors and it remains a matter of keeping an eye on things. However, according to insiders, the prospects are not negative.
The quiet week is generally described as a small dip. The market is expected to feel more settled again after Easter, as purchasing interest increases again. The milk supply will increase seasonally, but the catering industry is also expected to open its doors again in the run-up to the summer. This can also give the market additional impulses. In short, an unpredictable market.
Click here for explanation of the DCA quotations (liquid)
Click here for explanation of the DCA quotations (cheese)