Europe’s dairy market held steady in the last week, although activity is quiet overall. Spot prices for butter appear to have bottomed out somewhat after falling almost €1,000/t in prices over the last month.

Spot prices for butter have traded slightly higher in Europe over the last week at €5,100/t to €5,350/t. Traders report the market remains very thin from a supply perspective, especially as the seasonal pattern of milk production in Europe is beginning to fall.

Skimmed milk powder remains under downward pressure

Despite the drop in price over the last month, butter priced above €5,000t is still exceptionally strong when viewed in historic terms. On cheese markets, prices have held steady in the last week and remain healthy overall, with cheddar trading above the €3,000/t mark.

On the powders side, the price of skimmed milk powder (SMP) remains under downward pressure, as the European Commission lowered its minimum selling price to €1,125/t at its latest SMP tender sale. Just 2,408t of SMP was sold at the latest tender sale, reflecting a major drop-off in demand.

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