Dairy market analysis: Some price weakness in SMP but butter holds stable

Published 2020년 8월 13일

Tridge summary

Skim milk powder prices in Europe have been falling for the past three weeks, reaching €2,083, a decrease of 2.0% from the previous week and €139 less than the recent high in early July. In contrast, butter prices have remained stable at €3,385 for the sixth week in a row. EEX futures' prices have also decreased, with EEX butter down 2% and EEX SMP down 7.5% on average since mid-July. The latest GDT auction in New Zealand led to a 5.1% drop in the overall index, with powders and butter being the main contributors. However, anhydrous milk fat saw a 3.0% increase. The milk supply data for the top five global dairy exporters showed a slight increase in production compared to last year, with the US being the only one to see a decline in June. Chinese dairy imports were mixed in June, with some products seeing a decrease while others, like anhydrous milk fat, cheese, and whey, saw a significant increase.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The last couple of weeks have seen some price weakness creep into skim milk powder (SMP) markets while butter prices have been very stable, according to multi-national financial services firm StoneX (formerly INTL FCStone). In a breakdown of where the market is at at the moment to AgriLand, Dr. Peter Meehan, senior commodity analyst at StoneX, said: “This week saw the European SMP quotation post its third decline in a row as it came in at €2,083, down 2.0% on the week while four moves lower in the last five weeks sees the European SMP quotation down €139 (-5.9%) from the recent highs posted in early July. The European butter quotation continued to hold firm, remaining at the €3,385 level for the sixth consecutive week. “EEX futures’ prices have also moved lower over the last few weeks with EEX butter’s August 20 to April 21 strip down 2% since mid-July while EEX SMP has given up 7.5% on average over its August 20 to April 21 contracts during the same period.” Continuing, Dr. ...

Source: UKAgriLand