Surprisingly firmer undertone in the dairy market

The seasonal decline in milk supply, in combination with increasing demand, appears to be one of the main reasons for the firmer undertone on the dairy market. Spot milk remains in short supply, and the product is also becoming increasingly scarce in Germany and France. The DCA quotation of Dutch spot milk increases this week by €0,50 to €40,50 per 100 kilos. In Germany, the price rises by €1 in both the north and the south, reaching €37 and €39 per 100 kilos.

Cream shoots up
This week it is the cream price in particular that stands head and shoulders above the market. The DCA quotation increases by no less than €290 to €4.697 per tonne. The sudden increase in demand is difficult to explain. The cream price has suffered in recent weeks and this may now be corrected. It cannot be ruled out that the price will make another slight downward correction in the coming weeks.

Cheddar attracts some attention
Sentiment varies somewhat on the cheese market. In general it is quiet on the market. Most buyers seem to be stocked with cheese. Prices of Edam and Gouda are moving mainly stable. Mozzarella's DCA quotation has fallen slightly due to increasing supply. Cheddar prices have risen slightly. Cheddar Curd increases by €20 to €3.410 per tonne and Chadder Mild increases by €30 to €3.485 per tonne.

Powders
The powder market is generally in balance. The market is very quiet and supply and demand are calm. This largely has to do with the holiday period. The DCA quotes vary from slightly decreasing to slightly increasing. The quotation for whole milk powder has risen the most, by €70 to €3.120 per tonne.

Expectation
The market expects the market to remain generally stable during the summer period. The market will probably pick up again from mid-August, when people return from holidays and the refrigerators are filled again. This - in combination with further declining milk supplies - can lead to a short-term price peak, as is usually the case around that period.