European dairy market quotations were lower overall last week with the average price of some key commodities dropping, according to multi-national financial services firm StoneX.
4,450t of dairy products traded on the European Energy Exchange (EEX) last week across 890 lots.
795t of butter was traded, 2,805t of skim milk powder (SMP) and 850t of whey. Tuesday (July 5) was the busiest day for activity with 1,215t trading for the day.
Senior EU dairy analyst at StoneX, Peter Meehan explained that EEX butter futures were down 1.4% on average across the July 2022-February 2023 strip, with an average price of €6,912.
EEX SMP was also lower with its average price coming in at €3,746, down 2.2% on the week prior. EEX Whey suffered a significant drop of almost 8% on average over its July 2022-February 2023 strip, with an average price of €1,008.
“The European quotations were lower overall again last week with butter, SMP, whey and whole milk powder’s (WMP) average prices all moving lower.
“The EU butter index made it four declines in a row, slipping by €20 (-0.3%) to €7,345,” Meehan stated.
The decline was driven by German and Dutch quotations, while French butter remained unchanged.
SMP saw its third decline in a row dropping €30 (-0.7%) to €4,007, while the downward trend of whey continued, falling for the 12th time in a row to €1,032.
The WMP index made back-to-back declines moving down by €17 (-0.3%) to
€5,070.
Meehan also noted that German milk production remained behind last year in May with collections coming in at 2.83 million tonnes, down 1.8% year-on-year and 1.7% behind the three-year average for the month.
Italian milk production for May was estimated at 1.11 million tonnes – which is down 5.7% year-on-year.
In Poland, milk production totalled 1.12 million tonnes in May, up 0.2% year-on-year and the biggest volume of milk collected in Poland in a single month.
“Australian milk production fell further behind last year in May, posting their lowest volume for the month since pre-2010 although July-April collections were revised slightly higher,” he stated.