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High Markets attract High Offers

1 min read

    We saw a relatively slow start to the week yesterday. With a long weekend behind us, yesterday felt like a typical Monday with most partners looking more for information than for offers and bids. We do see that with higher markets more sellers appear to sell products. Firm markets attract higher prices. We don't see the buyers yet accepting these higher prices. 

    Some positive news for the farmers in the Netherlands, Friesland Campina is keeping the milk price stable. It is another signal that the producers don't expect prices to fall further. And looking at the current commodity prices and the prices they try to sell at, we can only expect milk prices will start to go up again during the summer.

    This should put a floor under the milk decline that some still expect. With milk prices between 42ct and 45ct, we think the milk price will not put a break on milk production in H2 as most of the market participants (and us) expected. This might take a bit of the premium out of the market for H2 as well.

    Looking at action at the EEX and CME it seems these markets are taking a slow start to the week as well. With hardly any trades we keep this update short and simple.

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