Correction and ceilings hit liquid dairy market

The changed sentiment may be a temporary phenomenon, various parties suggest. In France, Belgium and Poland, there will be one day less work this week in connection with the commemoration of Armistice Day on November 11 (the end of the First World War). Prices may rise further next week, but the overall price level on the dairy market is now quite high. It is also possible that the desire to buy drops somewhat.

The butter price moved downwards along with the cream price, but a huge gap remains between the official butter price and the cream price.

Prices for raw milk remain virtually stable this week at a level of €50,00 (Netherlands) or €52,00 to €56,00 in Germany and France, DCA notes. These prices are ex works. Furthermore, in general the following applies: the further south, the higher the spot milk prices.

From southern Europe, the demand for liquid products is greatest. This is also noticeable with concentrates and skimmed milk. Prices for the latter product range from €25,00 to €26,00 per 100 kilos. 

The strongest price increases occurred this week on the powder market. Skimmed milk powder (food) took the cake with a price increase of 2,61% to a level of €3.145 per tonne. Close behind were the prices for skimmed milk powder for feed and for whole milk powder

The cheese market still seems to be doing the best in terms of value creation. Processors who can make cheese do so extensively. Prices, meanwhile, barely rose this week. In a few cases they dropped themselves. For example, mozzarella had to sell for €15,00 per ton last week. It is also striking that the curd of Cheddar is now as expensive as the young cheese. 

Whatever price movements there are next week, milk supply promises to remain tight for the time being and the dairy market therefore high. This high price level is expected to continue into the first quarter of next year. In any case, the butter and milk powder quotes on the EEX futures market also indicate this.