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Short Update: 27th of March

1 min read
  • Butter
  • Powder

Yesterday mirrored the ongoing market trend we've been observing for weeks. We commenced the day with a hint of firmness, only to witness a shift towards more offers and fewer buyers as the day progressed, ending roughly where we started the day. Despite the market's longing for a new impetus, it continues to struggle in finding tangible catalysts.

The GDT Pulse failed to ignite any significant excitement. Despite anticipations of a slightly bullish sentiment in the EU that could potentially uplift prices, the downward movement in both SMP and WMP prices signaled another bearish trend for powders. Reports indicate SMC prices oscillating between €1350 and €1500, while SMP trades hover between €2250 and €2350 in the EU. However, there appears to be a stronger presence of buyers within the range of €2100 to €2200 for codex and €2250 for non-standardized products, indicating some underlying support. Notable selling offers include:

  • 200 metric tons of Irish SMP codex FCA Ireland for April at €2250.
  • 150 metric tons of Vreugenhul SMP codex FCA NL at €2325.
  • 100 metric tons of German SMP for April FCA Germany at €2300.

The butter market exhibited signs of nervous trading yet again. Deals were struck for NL/DE/BE for Q2 + July at €5675, while Q2+Q3 traded at €5720. Additionally, Q3 trades were observed at €5825 for NL/DE/BE. Irish butter is being offered slightly lower, with bids significantly lower, rendering trades impractical. Meanwhile, the cream market experienced some pressure in the morning but rebounded later in the day, with prices for the upcoming week ranging between €6400 and €6500. Encouragingly, there's positive news for cooperatives, as retail prices for April remain steady at around €5900, providing robust support for cream prices during the initial milk flush month. Notable transactions include:

  • 132 metric tons of Irish lactic for May - June at €2625.
  • 132 metric tons of Irish lactic for Q3 at €5750.
  • 132 metric tons of NL/DE/BE for Q3 at €5850.

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