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After a prolonged winter with difficult weather conditions across the continent up to last month, milk volumes are finally starting to pick up pace.
Despite the rising tide of milk, dairy prices in Europe continue to hold firm this week. On European spot markets, prices for butter, cheese and even milk powders have improved to varying degrees.
Spot prices for butter are now trading as high as €5,850/t, which is almost €2,000/t higher than where prices started 2018. Dairy traders are reporting that German supermarkets have set a retail butter price of €5,760/t for May, which should underpin the market into June.
Cheese
On cheese markets, demand is very strong as we move into the summer months. Prices for gouda and mozzarella are in very healthy shape at €2,900/t and €3,200/t respectively. On the back of this, Irish cheddar is commanding strong returns at the moment in the range of €3,100/t to €3,150/t ex-factory.
On powder markets, Irish-made whole milk powder (WMP) is selling at €2,550/t to €2,650/t ex-factory. Futures prices for skimmed milk powder (SMP) are trading at €1,500/t in the last week, which is helping sentiment.
The next tender by the European Commission for sale of its SMP intervention stock is expected to attract more bidders and further volumes could be offloaded. After months of stagnation, SMP markets appear to have finally bottomed out and are in somewhat of a recovery.
European dairy prices continue to rise despite GDT fall
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