Weekly Wrap-Up

What we have seen the week of September 9-15

Market in general

The dairy market is gathering in Dublin this week trying to find some direction. As we noticed at OpenDairy as well, the focus is on the demand side of the market. The consensus is that the supply situation can only get worse, and demand can only get better.

The question is when, and to what degree. Demand has declined with bigger figures than supply, but that would also mean pipelines become more empty. For now, we don't see signs of urgency yet. Prices for powders and fat moved up a bit due to some short covering, but this quickly pulled sellers back to the market, stopping any further upside.

Within OpenDairy we have seen the following activity

Butter - The price increase has stalled a bit, it seemed to mainly trader-driven. Higher prices sparked more offers, but buyers did not accept the higher levels. Cream stabilized as well. Spread between fresh and frozen is widening.

Q4: buyers at EUR 4325-4375/mt FCA, offers between EUR 4400-4500. Q1 buyers between EUR 4400-4450 and sellers between EUR 4500-4550

‍

SMP - Again, more activity at a bit higher levels. The Algerian private market announced a big tender, causing a squeeze for product.

This caused sellers to return as well, not willing to miss the momentum of this revival. Fresh product availability in Europe and the US is in decline, but New-Zealand still needs to work through the season. We've seen codex SMP trade between EUR 2150 and 2200exw, for food.

The gap between feed and food prices is closing. We see buying interest at EUR 2125-2150exw for Q4 and EUR 2200exw for Q1. Sellers are quoting EUR 50-100/mt higher.

BMP - Finally, demand seems to pick up, although for 2024 requirements. GDT showed very weak results for EU BMP, but the current market is trading higher. Price today are between EUR 1800-1900/mt exw.

SWP - High whey proteins are more volatile than bitcoin in today's market. The rally has continued, with demand still plentiful. SWP feed and food are moving up in the slipstream, although not with the same violence.

Feed SWP around EUR 670/mt for prompt. Food between EUR 780-850/mt.

‍

‍

Some of the offers / bids we have at OpenDairy

• Buyer for Sweet cream butter, prompt
• Buyer for 700mt Codex SMP MH
• Buyer for 500mt BMP, Q1 2024
• Buyer for 500mt Codex SMP MH, Q1 2024
• Seller for 100mt Codex SMP MH, prompt
• Buyer for WMP + SMP, 2 fcl per month

‍

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!