Market outlook

Due to our market intelligence and efficient decision making, Bdairy is able to keep its business partners up to date about the newest market trends, offer competitive pricing and act as a sparring partner for dairy procurement and sales decisions. Gathering and communicating the latest market insights, we help our partners to stay at least one step ahead. Your Bdairy market wizard is happy to provide you with a personalised approach.

Market Outlook | 6 August 2019

Knowledge is power, so every month we make a detailed analysis of the latest developments in the dairy market. This month our Commercial Manager, Sjoerd Westerbaan, tells you everything you need to know.

Skimmed Milk Powder

The EU SMP market price has been increasing gradually during the last weeks. Currently EU SMP is trading between EUR 2050/mt FCA and EUR 2100/mt FCA. EEX SMP futures are trading at a significant premium compared to the physical market, at levels between EUR 2150/mt FCA for August and EUR 2240/mt FCA for Q4.

Demand traditionally slows down during the month of August and short term needs both on the EU and export markets are fulfilled. At the same time, EU SMP producers are not in a hurry to sell their volumes as stocks are manageable. EU SMP production for 2019 is expected to be down by 2%. EU Producers are shifting more and more towards fatfilled milkpowder production and consequently less SMP is produced. Our outlook for the coming weeks is stable

Watch the video below for our complete analysis.

Butter

The EU butter market has taken a significant hit in the month of July. Prices dropped with EUR 200/mt in the last weeks. Main reason for this is the amount of physical stock at producers and in the EU warehouses. Warehouses are full with beef and dairy products, which is currently makes it difficult to find warehousing space.

Last GDT showed an increase in pricing, which came as a surprise to many. It is questionable if the next GDT will continue to show the same trend.

Watch the video below for our complete analysis.

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