Looking for Bulls Outside of Cologne

Yesterday we spent most of our time traveling back and it seemed most of our partners decided to do the same. We expect most to go back to their desks tomorrow and put together a strategy for the next months. We did get the chance to speak to a few more people who already left the Anuga or didn't visit. Those who didn't visit the Anuga seem a lot less bullish than those who did. Because the energy within Hall 10 in Cologne was bullish and optimistic, outside of the dairy hall and at the trading/purchasing/sales desks of most of our partners it has been quiet and boring. 

The difference in how partners look at the market is quite remarkable. Either the visitors of the Anuga are better informed and have the advantage of having real-time market info directly at their disposal. But you could also argue that most partners have heard the same narrative as they have all been wandering around in the same space, passing on the same market view meeting after meeting. Looking at our own vibe, we notice we experience the same. The bullish sentiment was hard to miss at the Anuga but hard to find out in the real world.

Most activity seems to come still from the export market. We hear there is good demand from SE Asia for powders, although we don't hear a lot of deals are confirmed. The next weeks should show if Oceania and the US can supply sufficient productss in time to keep the EU sellers out. We hear bids at $ 2650 up to $ 2750 CFR for popular producers, but the EU seems to be aiming for $ 2800 CFR and higher.

For butter, the biggest demand still comes from exports to Turkey (usually an active buyer in October / November) Ukraine and Morocco. EU buyers haven't called yet. Export demand is keeping the EU butter price firm, and it will probably keep it firm for the next months.

Cheese demand from export seems hard to find. With the export of cheddar under pressure, it seems other products are starting to struggle a bit as well. Within the EU spot demand for Gouda / Edam continues to pull the market for cheese.