Inside Milk
Milk flush tempered by moderate spring weather
The milk supply is still lagging behind last year due to the cold weather and the milk flush is still pending, which leads to a limited supply. What are the DCA dairy quotes doing this week?
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The European milk supply is still behind last year. Because the weather conditions are less good this year, milk production has not yet been increased sufficiently to last year's level. We have now had a nice week, but the prospects for next week are less good again.
The Dutch milk supply is increasing seasonally, but there is no real flush yet and availability is tight. The DCA quotation of Dutch spot milk moves this week to €36,50 per 100 kilos. This means that the price level is far above the level of previous years. In Germany the price moves between €33,50 in the north and €34,50 in the south.
Calm question
Furthermore, supply and demand on the market are reasonably balanced. There are no large volumes available, but demand is also relatively quiet. Buyers generally have a wait-and-see attitude.
The DCA quote for concentrate is quite stable this week, rising by only €5 to €1.985 per tonne. Powder prices are also moving relatively quietly this week and are only rising or falling slightly.
Uncertainty reigns
Room feels a little more solid this week. The price increases this week by €55 to an average of €4.480. Here too, supply and demand are in proportion, there are no large volumes available and at the same time there is little demand. The current price level moves well above last year's level, but is unable to match the prices of 2018 and 2019.
Major parties are also postponing purchases due to uncertainty about the relaxation of the corona measures. In the Netherlands, the catering industry will be open in the afternoon from Wednesday, but in Germany there is still no relaxation.
The DCA quotations for cheeses have fallen slightly this week. Mozzarella drops this week by €80 to €3.085 per tonne. Edam, Gouda and Cheddar Curd also have to give up this week, but the declines are less significant than for Mozzarella.
Perspective
The market is currently described as 'not wild', but in principle there is plenty to do. The hope for relaxation in Europe remains and when this comes, firmer prices are also expected. The milk supply is still lagging behind last year and there are no good spring temperatures in prospect for next week. This offers little perspective for the milk flush and it may therefore be delayed. However, this can moderate price pressure on dairy products if demand remains moderate.