Having surged ahead in April and May to the point of overheating, Europe’s dairy market has been cooling down somewhat over recent weeks.
Butter and cheese markets in particular have traded lower since the beginning of June, despite a seasonal drop in milk production on the continent.
On butter markets, spot prices reported to the Dutch Dairy Board fell more than €100/t in the last week to €5,860/t. This is the third consecutive week of retreat for European butter prices, which peaked above €6,100/t in early June.
The price of butter in Europe remains way out of kilter with the rest of the world, being almost €900/t ahead of New Zealand prices and €1,300/t ahead of the US.
On cheese markets, prices have started to soften following a surge in the months leading up to the World Cup.
Cheese markets
Spot prices for mozzarella and gouda have fallen by €50/t and €100/t respectively in the last week, with further drops expected in the weeks ahead. Cheddar prices remain very healthy overall, around the €3,200/t mark, and the outlook for the summer is one of stable pricing.
On the powder side, spot prices for skimmed milk powder (SMP) have fallen slightly in the last week to €1,560/t, after the European Commission sold more than 23,500t of SMP out of intervention for a minimum price of €1,195/t. The latest tender sale reduces the volume of SMP sitting in intervention across Europe to just under 282,300t.
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Monday dairy markets: further progress made on SMP intervention stockpile
Having surged ahead in April and May to the point of overheating, Europe’s dairy market has been cooling down somewhat over recent weeks.
Butter and cheese markets in particular have traded lower since the beginning of June, despite a seasonal drop in milk production on the continent.
On butter markets, spot prices reported to the Dutch Dairy Board fell more than €100/t in the last week to €5,860/t. This is the third consecutive week of retreat for European butter prices, which peaked above €6,100/t in early June.
The price of butter in Europe remains way out of kilter with the rest of the world, being almost €900/t ahead of New Zealand prices and €1,300/t ahead of the US.
On cheese markets, prices have started to soften following a surge in the months leading up to the World Cup.
Cheese markets
Spot prices for mozzarella and gouda have fallen by €50/t and €100/t respectively in the last week, with further drops expected in the weeks ahead. Cheddar prices remain very healthy overall, around the €3,200/t mark, and the outlook for the summer is one of stable pricing.
On the powder side, spot prices for skimmed milk powder (SMP) have fallen slightly in the last week to €1,560/t, after the European Commission sold more than 23,500t of SMP out of intervention for a minimum price of €1,195/t. The latest tender sale reduces the volume of SMP sitting in intervention across Europe to just under 282,300t.
Read More
Monday dairy markets: further progress made on SMP intervention stockpile
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