in our Weekly Wrap-Up we share with you what we have seen happening and trading in the market.
September has started an many of us hope this will be the end of summer in terms of trade activity. Markets have remained relatively stable with low liquidity in Europe over the past few weeks, but in the world market there's plenty to talk about. We're not very positive on the upcoming GDT and hear local Chinese stocks are traded below GDT equivalents. Local resellers want to get rid of stocks before the 0% duty for NZ kicks in in January. Could be a tough break for EU origin product as well..
Butter - The direction of the butter market is bit unclear and therefore acting a bit slow. On the bullish side of things cream prices moved up and is now trading around 5500/mt.
Also, butter prices in Eastern Europe are higher than in Western Europe and this is rare. On the bearish side of things demand both from retail and end users is weak. Most of the end users seem to be covered until the end of the year while producers still have volumes to offer and to move.
Furthermore, the French quotation for butter showed a big drop from EUR 4800 to 4500/mt.
Overall we see people to be more bearish than bullish at the moment but at the same time they believe that the downward potential is limited as there seems to be good support at levels just above EUR 4000/mt FCA and we are not far away from that level.
At the moment we are seeing the following levels:
Prompt: EUR 4150 for IE butter and EUR 50-100/mt for DE/BE/NL
Q4: 4250 (bid) - 4350 (offer) for DE/BE/NL
Q1: 4400 (bid) - 4500 (offer) for DE/BE/NL
SMP - Market is hard to understand. Producers are not pushing to sell, buyers are not keen to buy. Some price checking for Q1 shipments, but any premium is rejected and turns buyers back into waiting mode. Offers between EUR 2150-2200 FCA for food, demand between EUR 2050-2100 FCA. Low NZ offers hovering around in the export markets.
BMP - Still availability of well priced volumes, both fresh and a little older product. Demand is key, which has been absent for the last months.
SWP - The only market with a firmer undertone, driven by the steep price increase of high WPC's.
Demand in Poland exploded after local producers stopped offering, causing a real squeeze in Europe for the higher proteins. SWP firmed as well, for some origins.
Food SWP available around EUR 725-800/mt FCA depending on origin.
.png)
As usual, if you would like to know more please don't hesitate to contact us!
Want to receive our Weekly Wrap-Up by email every Friday? You can sign up here!
Get a live 1:1 demo and your questions answered with one of our customer champions.