Wholesale prices for milk products have seen falls across the board this past month according to DairyCo’s latest update.
It says cream prices continued to fall between the end of April and beginning of May with prices dropping below the £1,300/tonne level. From around the second week or so of May buyers were thought to have come back to the market, giving some support to prices. More recently, UK cream prices have been following a similar pattern as continent prices which have been supported by various EU countries having a bank holiday on Thursday, May 29. This allowed prices to pick up back into the £1,300’s.
In terms of butter DairyCo says the trade remains quiet in May as strengthening Sterling against the Euro made UK produce less competitive in the EU market. Buyers appear to have continued their ‘wait-and-see’ approach and hence are only entering the market to cover short-term requirements. The lack of PSA remains an issue for those trying to judge stock levels.
SMP prices fell again in May despite reports that buyers are returning to the market. UK SMP prices continue to align with international values. Trade occurred over a wide range of prices over the month, highlighting the uncertainty in the market.
DairyCo also notes that mild cheddar prices fell, on average, £100/tonne over the month as stocks have been building well through the flush. Buyers are currently quiet. Falling curd prices have also been affecting mild prices in May. Trade sources suggest that prices for mild appear were more volatile in May. Mature remained stable at £3,650 as little stock appears to be available on spot trade.