Fat down, protein up in tame dairy market

Overall, however, the dairy market is quite stable. Prices on the cheese and milk powder markets are mainly moving sideways. Buyers are adopting a wait-and-see attitude and are not very willing to pay higher prices. Producers are reluctant to lower their prices, especially since milk supply remains relatively moderate and they have little product in stock. They also know that buyers are often short-covered.

Due to this extra supply and Irish product that will also be on the market soon. This causes the DCA quotation for cream to drop by €120 per tonne. Due to the high prices this seems like a big step down, but it is a price drop of less than 1,5%. The butter quotation is also slightly under pressure. This follows the cream quotation. 

Concentrate prices on the rise
The increase in the concentrate price is more substantial, amounting to over 4%, but this also does not turn the dairy market upside down. There is somewhat more product available than at the end of last year, but there is also more demand, including from Greece. 

The price of raw milk is increasing slightly, both in the Netherlands and in Germany, mainly due to the more expensive concentrate, and because manufacturers can usually use most of their supply themselves. As a result, spot milk prices are moving relatively close to the basic payment prices of the factories.

Boring market
Ultimately, the dairy market is currently relatively calm, almost boring. There are no major market changes, parties are mostly waiting and on their guard for possible disruptions. For example, due to the threat of high import tariffs in the US and other trade-disrupting political events. In addition, people are eagerly awaiting the development of milk production this spring. So far, the supply in Northwestern Europe is certainly not getting out of hand. Certainly not in France, where prices for cream and butter in particular are now at their highest.