In our Weekly Wrap-Up we share with you what we have seen happening and trading in the market.
Sometimes it seems we're hopping from one dairy event to the next one. Trying to keep up with all seminars, tradeshows and network drinks results in a lot of frequent flyer points.
This week was Gulfood week, resulting in a lot of discussion, but limited business. The market is looking for a level where buyers and sellers meet again. On SMP it's interesting to see we're back at the EUR 2600/mt FCA levels after retracing to EUR 2400-2450/mt. Butter also retraced, but there we see strong support around the EUR 5200/mt levels.
Are we moving rangebound for a while after this correction?
Butter - the market has corrected after a sudden spike in prices. With cream prices volatile in a "thin" market, it's hard to give direction to the butter market. Buying interest is around EUR 5200FCA, where sellers are at EUR 5400FCA.
SMP - Prices on GDT converged with US and EU prices, meaning the bargains from NZ are no longer available.
This sparked some demand, but especially for forward contracts. Remaining demand for Q4 shipment is limited.
Fresh codex trading around EUR 2600FCA, EUR 100/mt premium for Q1. Feed trading at EUR 2550DAP for Q1.
BMP - General demand is a bit better, depending on the origin and brand. We expect more demand for Q1/Q2 shipments. Prices between EUR 2200-2400FCA for EU origin.
SWP - firm. SWP Feed moved up to EUR 850DAP for Q1. WPC is skyrocketing once again and also SWP food producers are oversold with hardly any volumes available.
With Cheese valorizing so well, we wonder where all that whey is going?
As usual, if you would like to know more please don't hesitate to contact us!
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