Why do we expect a price correction for week of 5-6-23? Market report 2-5-23
Protein concentrates still falling, milk fat rising, cheese and skimmed milk powder slightly rising, spot milk price stable.
At the beginning of this week, prices increased, but they decreased slightly towards the end of the week. For the coming week we expect slight price corrections for most products. Cagliata and mozzarella currently have lower value added compared to other cheeses, so we do not expect any changes for this one.
The EU recently published the latest dairy market figures with a globally negative price trend. Production remained more or less stable, but weak demand due to high prices led to overproduction. However, it is important to stress that the aim of policy makers and central banks is to curb inflation, which also affects the dairy market. In any case, for dairy products, the goal has been achieved.
And in Switzerland:
Still full throttle towards the abyss!
The situation is tense, cheese sales at home and abroad as well as production have fallen sharply and the warehouses are full. Currently, the renewal of subsidies for milk powder production is being discussed; they are now going under the name "Box for Milk Powder Concentrates".
To the question: why do we expect a correction for the week of 5-6-23?
In Europe, prices for milk fat and skimmed milk powder have risen significantly in recent weeks. However, we believe that too much optimism may have been at play and therefore expect a slight correction. However, our forecast for the third quarter remains unchanged at +4% to +8%.
Our recommendation for Q3:
This week may offer the last opportunity to benefit from lower prices. Especially for mozzarella and cagliata we expect prices to increase in the near future. If you still have storage capacity, you should buy on the spot market and store the goods for Q3.
We are present at the following fairs:
- Symposium Fine Food and Drink, Munich 15/16 June 2023 (as co-exhibitor with Dicke Food).
- International Cheese Award, Stafford GB, 30.6; 1.7. 2023 (as participant)
- Anuga, Cologne 7 - 11 October 2023 (as co-exhibitor with Dicke Food)
- Marca Bologna 16, 17, January 2023
- Salon du Fromage, Paris 25- 27-2-2024^
- Cibus Parma 7 - 10 May 2024
- PLMA, Amsterdam 28- 29 May 2024
- Sial, Paris 19- 23 October 2024
Kind regards, Affineur Walo
