In our Weekly Wrap-Up we share with you what we have seen happening and trading in the market.
The market turned from bullish to very quiet.
Before GDT, sellers were confident and sticking to the high levels. After GDT, export opportunities for SMP have become more difficult, but producers don't have the urgency (yet) to lower prices. This leads to low liquidity.
Butter stabilized, depending on spec and origin, with no clear direction. From a fundamental point of view, rangebound markets will result in increased farmgate prices. And compared to last year, feed and energy are much less expensive. China will keep growing milk output and demand is still not showing any panic...
We're in for an interesting 6 months.
Butter - calmed down after the momentum of Turkish quota passed. Sellers turn back to "regular" buyers and find no urgency. Producers don't seem to have stock pressure, maybe driven by good cheese valorisation?
Still a healthy carry in futures, pointing out the general market doesn't believe in a big correction downwards.
SMP - Early in the week, product was hard to find. Demand mainly from EU buyers, but after GDT sellers stood up again, worries about their odds on the export markets.
Offers between EUR 2500 and EUR 2600 FCA, depending on origin and spec.
Buying interest limited.
BMP - Offers are available, demand is limited. Prices between EUR 2100 and EUR 2200 FCA Europe.
SWP - Feed prices are coming off, trade is concentrated on Q1. High WPC still firm.
SWP food trading between EUR 900 and 1000 FCA, depending on origin.
As usual, if you would like to know more please don't hesitate to contact us!
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