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Slightly More Bullish Sentiment

1 min read

    Yesterday the market was quite active. We see more buyers for all commodities with some buyers bidding at slightly better prices than the previous weeks. Sellers are taking a step back from the market, although we still see plenty of products around. The market feels slightly more bullish, although we also see doubt with our buyers and sellers. 

    The firmer undertone in the market seems to be caused by the liquid market, and the question is what will happen once prices for raw milk and cream drop again. One of our partners pointed to the fact that historically week 36 is always the most expensive week for spot trading in liquids. In addition, the effect of the good weather impacting production (down) and impacting consumption for fresh products (up) is expected to fade. Temperaratus are normalizing a bit, this should increase milk production again, and temper demand. The first signals from the cream market are already easing a bit.

    We think it is safe to say this is the first time since we started writing these reports that we heard both buyers and sellers doubting their market view. Producers admit the lower demand for Q4 and buyers and traders seem to agree that demand for product further out is still good. We doubt we are seeing a market break out at the moment, but we think the current sentiment nervousness confirmed that nobody expects the market to drop much lower than today's (or last week's) spot prices.

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