In our Weekly Wrap-Up we share with you what we have seen happening and trading in the market.
Yet another tradeshow in Frankfurt brought the dairy market together again.
Uncertainty seems the dominant feeling. Producers are comfortable, but with farmgate prices increasing to EUR 0,46/kg, supply should come. Cheese is still running the show, making it easy for producers to avoid the drying towers for now. Stocks are expensive, financial years are ending, so we might see some interesting opportunities come along.
Butter - weaker driven by lower cream prices.
German retail prices increased but overall demand seems limited.
Fat valorizes better in cheese, which will keep supply pressure on butter limited in this part of the season.
SMP - EU product is not competitive based on current asking prices and a stronger Euro currency.
Even US origin seems to be available at better prices for export buyers. Within Europe we see selling interest increasing, at lower levels.
We expect this trend to continue towards competitiveness on the world market.
BMP - less availability from the "usual suspects". Sales into export markets have been good, buyers are turning to new and less known origins to fulfill their needs.
SWP - feed still weakening, and plenty of whey expected when the milk starts flowing.
Food whey is holding steady between EUR 950-1000exw, the WPC/WPI market is still trading at very high levels.
WPC30 and WPC 35 availability is good, at interesting levels.
As usual, if you would like to know more please don't hesitate to contact us!
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