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Daily Dairy Digest: 13th of January

1 min czytania
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The first few updates from our side this year haven't been optimistic for the market, and today is not going to be any different. The market continues to trade lower on every commodity and the pace isn't really slowing down. The spot market for raw milk is under pressure and we see all liquids trading lower. 

We hear that raw milk is being traded between 32ct and 35ct and the price for SMC is dropping towards € 1700-€ 1800 levels. Cream is trading between € 4800,- and € 5100,-. The problem seems that every week the volume on liquids seems to grow, and due to the lack of buyers for commodities like butter cheese and SMP the demand is dropping fast.

In the short term, there just doesn't seem to be a way to stop the downtrend. Even though at the moment producers are trying to keep their sales price for the commodities high, in our opinion, this will only result in higher stocks and pressure at a later moment in time. At the moment the pressure from Ireland seems to be small, but in 4-6 weeks we expect their production to start as well, which will result in more sellers on an already full market.

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