In our Weekly Wrap-Up we share with you what we have seen happening and trading in the market.
After a slow and stable start of the first trading week of the year, ONIL announced additional purchases, partly driven by a fire in local warehouses.
The results show the same picture as the past year; NZ is still happy to sell WMP volumes and Algeria is one of the few destinations where EU origin can achieve decent returns.
New-Zealand is still competitive on the world market for powders, the US can be competitive when selling stocks. We see a promising start of the milk output in Europe.
This combined with a fragile cheese market tells us we don't have to wait long for volatility to return.
Butter - Weaker, mainly driven by producers lowering prices. End users are not keen to book and seem well covered. Hard to find direction, we believe the milk output development will be crucial in the butter sentiment.
SMP - Weak undertone in Europe especially. The Algerian purchases did not cause any firmer sentiment, as prices are still not competitive on the world market. Red sea surcharges will result in lower EU SMP prices. We hope there is still demand with end buyers when the EU milk starts to flow.
BMP - Fresh availability is limited, but stocks seem to be available, especially for Irish product. We heard very low prices traded in the MENA region.
SMP demand is limited, which typically means BMP is slow as well.
SWP - Feed trading around EUR 800 CPT. Food quality steady around EUR 875-950exw depending on origin. High WPC market still very firm.
As usual, if you would like to know more please don't hesitate to contact us!
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