Analysis milk
Dairy market not yet in the grip of Trump effect
Mainly stable, with a slight downward deviation. This has been the course of the dairy market for several weeks in a row. It seems as if the market is not fazed by anything, or are signals from outside being ignored? That is not the case, but the dairy market in Northwestern Europe seems to be in balance in general and, given the slightly increasing milk supply, also to be heading in a logical direction.
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There are still few pluses to be found in the price overview, although there is some upward movement in whey powders (particularly food). The price of lactose is also increasing, as is that of permeate.
Compared to other years, the price for concentrates and other liquid products is still not very low, but not record high either. So there is still a lot of room for the price.
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But milk supply and prices don't tell the whole story. For example, cheese prices are still under pressure, but there are certainly no stocks that force producers or traders to sell their supply extra cheaply. Delivered foil cheese can hardly last any longer, often being four or five weeks old, and has therefore hardly been in the warehouse.
The market remains most difficult for skimmed milk powders and also for regular milk powders. These are products with relatively high protein, but they do not or hardly share in the high prices that are paid for other high-protein products. This indicates an undervaluation that is actually difficult to maintain, because why would you make whey powder feed for €900 per ton if the same whey can also be made into WPC80 for €11.000 per ton, or why make skimmed milk powder food for barely €2.400 if MPC yields €9.000 per ton? No suitable installations or too little capacity can be a reason, but there is not much else in the way.