Analysis milk
Falling dairy prices not yet a weak market
The dairy market is continuing the weakening movement that started last week. Almost across the board, the DCA dairy quotations have fallen somewhat. However, the market certainly does not feel weak. Rather, there is a kind of...
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Compared to a week ago, there are slightly more small price drops, but also fewer big drops. It indicates that the availability of product remains relatively limited, although there is a seasonal increase in milk supply
The price fluctuations on the spot milk market are almost negligibly small, although there is a small downward tendency in the DCA quotation. German and also French milk are somewhat cheaper per kilo, but corrected for fat and protein the price differences are still small.
The butter price is also slightly under pressure, mainly because the trade is offering cheaper product than the industry, but the availability of product remains limited. There is also still little extra supply of Irish butter available, mainly because the season there has started late. Reports that Irish exporters are first exporting as much butter as possible to the US, to avoid US tariffs, are refuted. There is simply not enough soft grass butter to export yet.
The cheese market seems to be fairly balanced after all, although there are some minor drawbacks. The valorisation of cheese and whey is still very good and beats most other options, at least at commodity level.