In our Weekly Wrap-Up we share with you what we have seen happening and trading in the market.
It's hard to find direction in the current market. SMP is weakening further, but SMC is holding steady. WMP is well sought-after, butter is trading weaker.
In the same period last year, we saw liquids already trading way below the commodity equivalent. And while milk production is pickup up, we don't see the effect yet. This diffuse situation is keeping market players cautious and on their toes.
Cheese and SMP valorisation are getting closer, and when the milk starts to flow, more volumes will be pushed towards the towers.
Butter - weaker, and less volatile than the past few weeks. Fat prices on GDT were firm on the other hand. The available product is all quite fresh, pointing out a "clean" market. EUR 5000+ butter prices make SMP production a viable option in the months to come.
SMP - Further weakness in Europe, and the CME seems to lose it's forward premium as well. NZ is still competing for business on the export markets, and with the freight rates from Europe increasing, it's hard to remain competitive.
In the OCI you can see that NZ is still the most competitive origin to all main destinations.
BMP - Availability is improving slightly, with healthy discounts against SMP. The prices are holding better than the SMP prices for now.
SWP - feed trading below EUR 800 CPT. Food prices are relatively stable between EUR 880 and EUR 950 FCA. Export demand is picking up.
Sales pressure from US is limited with prices CFR Asia above EU Equivalent.
As usual, if you would like to know more please don't hesitate to contact us!
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