MARKET ANALYSIS: 06.10.17
– Offers of cream at 2,85 €/kg. The question is: is the market panicking?
Raw milk is stable around 0,44 €/kg DAP and the skimmed is around 0,147 €/kg DAP.
Production of milk is obviously increasing since prices in Germany and Holland, but is this enough to justify the decrease of cream?
– Reports of butter are falling. Kempten decreased of 0,20 € the minimum, 6,50 €/kg, and of 0,10 € the maximum, 6,90 €/kg. Holland decreased of 0,25 € and today it is at 6,69 €/kg; France decreased of 0,05 € reaching 6,85 €/kg.
With this kind of evolution in the market it makes no sense to talk about averages.
For the moment who makes low-ball offers are only traders. German and Dutch producers are trying to resist, while the Polish are coming forward shyly.
Someone says that traders want dispose of the goods before the market collapse.
– Reports of skimmed milk powder are decreasing in Germany, Holland and France, but the situation of the market is really contrasting.
Some German producers said they have sold a lot and they don’t have many goods, so they can keep higher prices compared to the reports; other producers (french, irish and some german) are offering at reports prices until april/may.
– Believe it or not, french report of whey powder is lightly increasing.
– European average quotations of cheese reports are stable for cheddar at 3,55 €/kg, they are increasing for Emmentaler at 4,56 €/kg and for Gouda at 3,43 €/kg, they are decreasing for Edamer at 3,48 €/kg.
In Italy, cheese reports are stable in all main commodities exchanges; there is just an increase in quotation of Pecorino Romano in Milan.