Analysis Dairy
Pressure on the dairy market is now mainly affecting cheese prices
The dairy market has little cheer in store for the milk price this week. Prices remain under (slight) pressure almost across the board. The exceptions are cheese prices, which have fallen slightly more sharply. On the market for liquid semi-finished products, skimmed milk concentrate has a significantly lower ranking. The spot milk price drops slightly.
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Spot milk is now clearly below the payment price of the factories. The price is also below the Rohstoffwert, the calculated value of milk based on butter and skimmed milk powder.
Skimmed milk concentrate still partly reflects the effect of the price drop that started last week. Various market parties are already signaling a slightly improving trend towards the end of this week. Still, a more than 4% lower quotation is quite significant by this week's standards.
Cheese prices are falling slightly faster this week than the week before. The exact cause is difficult to indicate. At first glance, not much seems to have changed in the market. The demand is not very strong, but there is no stock problem. However, many buyers are taking a somewhat cautious stance, while some players are reportedly putting extra pressure by taking certain positions in the futures market. This could be an explanation.
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It should be noted that the market itself is not very inspired, which means that additional direction can easily be given by those who wish.