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Short Dairy Update 11th of June

2 min read
  • Butter
  • Cheese
  • Powder

Yesterday was a typical Monday without much activity. Due to some lower trades last Friday, we do see that buyers hope to find more low offers, but on the sales side the pressure doesn't seem to be spreading just yet. It seems the market is waiting for something, but what it is we are waiting for is hard to say. For now it seems the renewed activity for this week needs to come from the spot market for liquids. 

Yesterday we had a lot to say and we wrote a long update, today we don't have much to say, so we keep the update short and simple.

Liquids

The market for liquids might lead the way for commodities this week. Last week prices softened a bit, but the theory of why differs. Some say the lower demand for butter and SMP is causing prices for cream and SMC to drop, other blame the disrupted milk flow in the south of Germany. We expect prices for cream and SMC to trade slightly higher, although we don't expect any significant moves.

Butter

On butter we had not real market yesterday, although we did hear some lower trades for Q3 at € 6550. At these levels, we see increased interest and more buying interest. The market feel thin, as we see very small quantities offered on lower levels, but the bid volumes arent that significant either. We would expect the market to open with

  • an offer for 8 loads of Irish butter for June-September at € 6650
  • an offer for 3 loads of NL/DE/BE fresh/frozen for Q3 at € 6625
  • an offer for 4 loads of Polish Sweet Cream at € 6475

Cheese

On the cheese market, we had the same debate as last week. It seems prices won't move much lower, but the range upwards seems broken as well. Steady prices make the cheese market reliable for some, and boring for others (we are in this category). Overal we would expect a slight decrease in cheese prices if buyers stay inactive. We start with

  • an offer for 1 load Gouda for prompt at € 3980 fca nl/de/be
  • an offer for 4 loads Gouda for July/August at € 4150
  • an offer for 6 loads of Mozzarella for Q3 at € 4150

Powders

More offers mean more pressure on prices. Although the fundaments remains bullish, the sentiment is bearish and buyers just arent giving any reasonable bids. The pressure for close by remains stronger than the demand for further out. we start the day with the following offers

  • an offer for 300mt Limelco smp for August at € 2395
  • an offer for 200mt French smp for August at € 2425
  • an offer for 300mt Polish SWP for June/July at € 820
  • an offer for 300mt UK smp for August June/July at € 2425
  • an offer for 110mt French BMP for June at € 2400 DAP

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