Steady Start of the Week

This week we started with a relatively active market we see the market continuing to trade at roughly the same levels as last week. With still some buying interest for butter in Q1 and a bit more selling interest for Q4 the market dynamics haven't really changed. Some are keeping a close eye on milk collections as the worries surrounding supply keep growing. On the other hand, the worries surrounding demand haven't disappeared as well. 

We see that milk collections in the EU are struggling, France keeps reporting negative numbers of around -4% and Germany is also below last year's milk intake. For Germany, we have to note that milk collections in October were increasing at a very high rate as milk prices went above 50ct. Speaking today to the liquids traders we see they have the biggest worry about the supply side. Especially dutch traders see less milk and say to be prepared to see less milk week on week, instead of growth.

However, the traders who trade commodities like butter and SMP are much less optimistic. Only in one day, we have heard over 6 different reports of lower offtake, contract negotiations and buyers selling back commodities to the trade as demand from their buying industries is down.

Those who trade powders have their eyes on the GDT Pulse, although we wonder about the significance if we have to believe some of our partners. The relatively small volumes available at the pulse make the importance in the eyes of (the more bullish) traders smaller.