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

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. ...