Quick Update: 22nd of June

Today we only write a quick update. The market yesterday traded on the same levels we see the day before and without much extra news, we see little to report about. The market continues to feel stable/bearish and we see little bullish signals. But we do think that the way down could be smaller than some expect, and the way up can be found sooner than others might think. "We just need to survive the summer silence," one of our partners told us, and we agree with him!

The market for liquids still is trading relatively stable, some even would indicate a slightly weaker liquid market. Cream is trading in a wide range with the highest prices reported at € 5300 and the low end of the range just below € 5000. SMC is trading slightly lower compared to the previous week and we hear volumes done between € 1900 and € 2050,-. Raw milk on the other hand remains harder to find, although we do hear that some producers of premium brand retail products sell a bit more than usual.

Looking at the butter market it seems we have found a (temporary floor). With the lowest prices still trading at € 4300 over Irish butter we see more demand at this price popping up. The biggest pressure seems to be gone with our sellers and most want to see others follow their example. With more buyers than sellers, we feel the bottom of the market is reached for now. Only if cream prices will drop further we might see another selling round. Our market view for butter is stable to slightly bearish for the weeks that will follow. We still have:

• a buyer for Q4 for NL/DE/BE fresh at € 4750
• a buyer for Q4 for Irish butter fresh/frozen at € 4550 FCA Ireland

The cheese market remains very quiet. Buyers and sellers still aren't in any hurry to do anything. We see a bit more buying interest for Q3 + Q4 coming, but not at any attractive level. We fear the market will remain a bit like this for the weeks to come. Our market view remains stable for the cheese market for the weeks to come. our most concrete demand is

• a bid for 8 trucks NL/DE Gouda for August-November at € 3575
• a bid for 5 trucks NL/DE Gouda for July at € 3400

Looking at the powder market we continue to see pressure. Unfortunately finding buyers remains the biggest issue, sellers are plenty available. We think the market is due for another correction before we believe the market should find a floor between € 2200 and € 2300 for the SMP codex. The weakening demand for SMC at this time of year, the lower EEX and CME futures and the decline in de GDT all indicate a more bearish market. Our most recent bids are

• 200mt Solarec SMP medium heat for export for August at € 2300
• 100mt of Non Standerdized SMP 36% protein at € 2300 DAP Poland.