in our Weekly Wrap-Up we share with you what we have seen happening and trading in the market.
A series of events has caused the market to turn bullish. And for the first time in a long period, the bullish signs are not only coming from the supply side.
MENA buyers are covering for (early) Ramadan demand and China seems to become a bit more active. It seems this is the moment the whole market has been waiting for, for a long time. Behavior is driven by opportunism, not urgency, so we have to find out how sustainable this all is.
Butter - Beginning of the week the butter market moved a bit sideways with not so much action in the market as there was a big gap between bids and offers (Q4: bids at EUR 4350 and offers EUR 200/mt higher).
The GDT results on Tuesday came in a bit firmer and the next day cream prices in EU showed a similar picture. This resulted in more demand and offers being lifted easily.
At these higher levels we see more selling interest however most buyers (traders) seem to be covered for now and aiming for lower levels since their most urgent purchases are done and end users are still not very active.
We see the market as follows for DE/BE/NL butter:
Q4: 4450 (buy) - 4550 (sell) - Irish EUR 100/mt lower
Q1: 4525 (buy) - 4650 (sell)
SMP - The market quickly gained strength driven by a firmer (than expected) gdt and improving demand from exports markets.
Market still seems thin, but the upward movement is pushing some players into gear to cover some sales.
Good demand for specialty products, we are following the supply situation from NZ with interest. We hear anecdotes about powder being shipped to Australia due to lack of storage?
BMP - When SMP is weak, BMP is even weaker. When SMP gets tight, buyers turn to BMP again. Regular product around €1850-1950 exw and heat stable product around €2000exw.
SWP - Market has firmed driven by higher protein prices and surging high WPC prices. But the increase seems to lose steam.
We expect more offers on OpenDairy in the coming days, so keep a close eye on your screen!
As usual, if you would like to know more please don't hesitate to contact us!
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