MARKET ANALYSIS 08.06.18
It’s been a strange week – just to escape from boredom
Let’s start from milk and cream. Raw milk prices are rising up and Germany is asking 0,42 €/kg delivered Northern Italy and its availability is really low.
Cream was offered at decreasing prices until wednesday, but on thursday and friday everything changed to such an extent that german cream has increased by 6 cent/kg (from 2,89 €/kg DAP to 2,95 €/kg).
Such a fall in prices was inexplicable if we take a look to milk trend and if we consider the collection in decline in Germany and high temperatures.
Italian cream deals has been closed at prices higher than the ones of Milan bulletin and italian milk has reached 0,38 €/kg with some spikes of 0,40 €/kg.
Looking at cream trend it sounds strange the butter decreasing: polish butter is offered at 5,80 €/kg – this means that the deal can be closed at a lower price – and german butter at 6,10 €/kg. It seems that someone would like to sell part of the goods stored, in fact offers are mostly referred to frozen butter.
To confirm this decline Kempten and dutch reports have confirmed the same prices of the previouos week; only french bulletin has increased the price but we are taking about a change of 1 cent/kg.
Milk powder has increased on all reports – both zootechnical and food uses as well as raw.
It’s logical and due to the fact that dairy farms prefer to sell cream than produce milk powder, someone actually produces raw milk only every two months and not on an ongoing basis.
Market is impatient because of the ex-intervention goods auctioning on tuesday 19th; EU commission is thinking about a return to two auction per month instead of just one.
Whey powder is still on the rise, even if lower compared to the previous weeks, only price of whey powder for zootechnical use is stable on Kempten bulletin.
European average quotations of cheese are stable for cheddar at 3,33 €/kg, for edamer at 2,92 €/kg and Gouda at 2,95 €/kg, they are on the increase for Emmentaler at 4,56 €/kg.
On italian reports price of Parmigiano Reggiano more matured increased in Mantova.
In april japanese cheese imports increased by 12,9% compared to april 2017 and by 7,1% in the first quarter compared to the same quarter of the previous year.
Japan imported cheese mostly from EU (31,4%), Australia (30,4%), New Zeland (23%) and USA (11,6%).
Japan is the second world importer of lactose, but in april it has been bought 34,2% less compared to april 2017. Even SMP imports decreased (-29,2%), whereas whey powder imports increased (+110,6%).