Weekly Wrap-Up

What we have seen the week of August 7-11

Market in general

The Algerian tender, and especially the valuable information about the players and volumes is always a good benchmark of the state of the market. While powders were firming in anticipation of Algeria buying large volumes, the buyers seemed less impressed. Later this week they proved to be right once again. A slow, unclear market was pushed down again by the announcement of increased volumes on GDT. Butter and SMP traded down the last few days, providing buyers comfort in waiting further.

Within OpenDairy we have seen the following activity

Butter - this week the market started a bit slow, main activity was for Q4 between EUR 4450-4475/mt FCA for DE/BE/NL. This changed the second half of the week when more offers appeared on the market at lower levels. Q1 traded down from EUR 4500 to EUR 4400/mt FCA for DE/BE/NL this resulted in more offers for Aug/ Sept and Q4.

We are seeing the following levels at the moment for DE/BE/NL:
Aug/ Sept: EUR 4200 - 4250
Q4: EUR 4275 - 4350
Q1: EUR 4375 - 4450

SMP - Producers seemed comfortable with little volumes to offer. This combined with a slow holiday sentiment lead to low liquidity on the powders market. But the prices of EUR 2250/mt FCA and higher were not accepted by the market. We do hear competitive offers of NZ SMP flooding the market, destroying any hope of upside for EU and US powders.

Offers spot around EUR 2200/mt FCA/USD 2500/mt CFR Asia. Forward curve flattening as well.

BMP - tried to test higher levels, but stocks still seem ample. Still very competitive as an alternative to SMP. Prices between EUR 1750-1850/mt FCA EU.

SWP - Availability is still good, both for food and feed grade origins. The far east seems well supplied with US permeate and South American permeate (sub USD 400 CFR Asia, barely covering the drying costs?). Feed wheypowder trading around EUR 530/mt DAP for spot, EUR 640/mt DAP for Q4. Food whey powder well available around EUR 700/mt FCA.

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Some of the offers / bids we have at OpenDairy

• Buyer for West-EU codex at USD 2550/mt CFR Asia
• Offer French SMP Codex at EUR 2250/mt FCA For August
• Offer Irish SWP at EUR 700/mt FCA
• Offer UK SMP at USD 2500/mt CFR Asia

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As usual, if you would like to know more please don't hesitate to contact us!

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