Solid dairy market finds way further up

It is striking that the outliers upwards are not only limited to fat or protein, as is often the case. It is more product-based, although butter was the winner.

The butter quote shot up by almost €100 per tonne and moved towards €6.100 per tonne. This slightly reduced the distance to the room listing.

Butter futures also on the rise
Whether the move up was really related to the real market, or more to the sentiment, is open to question. The fact is that for the first time in weeks the futures for butter are again clearly above market prices.

With the cheeses it was especially mozzarella that took a strong step up. Most cheeses become more expensive between €10 and €30 per ton, mozzarella went up in price by €80 per ton.

With regard to powders, it is the skimmed milk powder that has risen the most in price. And the market expects the prices of this product to rise much further in the near future.

Skimmed milk powder to €3900?
Skimmed milk powder food is trading at €3.800 per tonne at DCA markets for the first time, but a number of large producers are trying to raise the price to around €3.900. Time will tell if this is possible, but the fact is that many commodity markets are on the rise. The other powders went up a bit more slowly. Although fat-filled milk powder, which is not listed, has also become considerably more expensive this week, according to various parties. This product (according to standard specifications) would have become about €50 per tonne more expensive and yield around €3.250.

In the liquid market, the picture is also somewhat mixed, but it all feels a bit calmer. Some of the prices are stabilizing, others are picking up slightly. In the Netherlands, the spot milk price this week actually remained the same as last week, but then the DCA spot milk listing considerable. In Germany there was even some recovery of the spot milk price.

More French raw milk
This happened against the background of reports of increased availability of raw milk. Especially from France. This relatively cheaper milk (46 to 49 cents) can be shipped to Northern Germany and the Netherlands, but not to Southern Germany. In the latter region, only Vlog milk is requested and the French milk does not meet that criterion.

There is extra supply from Poland and the Baltic countries for cream and skimmed milk concentrate. There, some processors have had to divert their product flow because of the war in Ukraine and the sanctions against Russia and Belarus. More product is therefore entering the Central European/German market. However, this does not (yet) have a negative effect on price formation here.