Archive for European Energy Exchange (EEX)

Weekly Dairy Market Recap: Key Trends and Analysis for September 8th, 2024

Stay ahead with our dairy market weekly recap. Discover key trends and insights for September 8th, 2024. Ready to navigate the latest shifts?

Summary: Last week offered plenty to digest if you’ve been watching dairy markets. EEX Futures saw a remarkable 3,770 tonnes traded, with butter and SMP showing gains; butter futures rose 1.8% to €7,668 and SMP increased 2.7% to €2,756. Over at SGX, 13,053 tonnes traded, with WMP falling 3.0% to $3,438 while SMP rose 1.4% to $2,876. Anhydrous Milk Fat (AMF) futures increased 0.4% to $6,978, but butter futures fell 0.4% to $6,629. European markets showed strength, particularly in butter, which rose 4.3% to €7,923. Meanwhile, China’s farmgate milk prices declined slightly, signaling potential shifts on the horizon. Additionally, global milk collections varied, with year-on-year increases in Italy and Australia, while Ireland saw a decrease.

  • Butter and SMP futures exhibited gains on EEX, with butter futures rising 1.8% and SMP increasing by 2.7%.
  • SGX futures experienced mixed results: WMP dropped 3.0%, SMP gained 1.4%, AMF increased 0.4%, and butter futures decreased by 0.4%.
  • European markets showed significant strength, especially in butter, which saw a 4.3% increase.
  • China’s farmgate milk prices slightly declined, indicating potential market shifts ahead.
  • Global milk collections presented a mixed scenario: Italy and Australia reported year-on-year increases, while Ireland experienced a decline.

Is the volatility of dairy market pricing keeping you up at night? Staying current on market trends has never been more important for dairy farmers and industry professionals. Knowing what’s happening in the global dairy industry might be the difference between a lucrative year and a struggle to break even. This week’s summary will thoroughly examine the fundamental market moves. We will look at the EEX and SGX futures, EU quotes, GDT performance updates, and recent milk collecting statistics from key producers such as China, Italy, Spain, Australia, and Ireland. Stay informed and manage the markets with confidence. Knowledge is power. Staying up to speed on market trends is more than simply surviving; it’s about flourishing in a competitive climate.

EEX Trading Thrives: Butter and SMP Futures Shine Amidst Market Activity

The European Energy Exchange (EEX) had an intense trading week, with a total volume of 3,770 tonnes moved. This action included 585 tonnes of butter and 3,185 tons of Skimmed Milk Powder (SMP). The busiest trading day was Wednesday, with an astonishing 1,735 tons moved.

Butter futures on the EEX showed noteworthy growth, marking the sixth consecutive week of price rises. The average price for the September 24-April 25 strip increased by 1.8% to €7,668. Except for the Mar25 contract, gains were seen throughout the curve.

The SMP futures market, on the other hand, demonstrated its resilience, with a 2.7% rise over the same period. The average price increased to €2,756, a clear indicator of the market’s comprehensive confidence and stability.

Whey futures, on the other hand, fell somewhat by 1.3% during the September 24-Apr25 strip. The average price finished at €963, showing weakness in this market.

SGX Futures: Navigating Last Week’s Trading Dynamics

Let’s look at the SGX trading activity from last week, which saw 13,053 tons exchanged. Whole Milk Powder (WMP) fell by 3.0%, dropping the average price to $3,438. This decrease raises concerns about short-term demand and possible supply changes.

Skim Milk Powder (SMP), on the other hand, showed resiliency, rising 1.4% to an average price of $2,876. This rising trend in SMP indicates a more stable future, owing to consistent market demand.

In the Anhydrous Milk Fat (AMF) futures market, we saw a 0.4% increase, bringing the average price to $6,978. This minor increase reflects customers’ consistent desire for it, perhaps motivated by its use in high-fat dairy products.

Butter futures on the SGX showed mixed results, down 0.4% to an average of $6,629. The slight drop in butter prices might be due to seasonal changes or adjustments in customer preferences. However, observing these small swings as the dairy market matures can provide valuable insights for future trading tactics, enlightening us about the market’s dynamics.

European Dairy Market Surge: Butter and SMP Lead the Rally

The European dairy market performed well, continuing its upward trend for the sixth week. Butter led the way with a 4.3% rise, propelling the index to €7,923. This increase was even more noticeable in the French market, where butter prices rose 7.9% to €7,770. Year on year, the average butter price has increased by 63.7% to €2,880.

Meanwhile, the SMP index rose 2.8%, reaching €2,532. This increases SMP’s average price to €334 over last year’s levels, or a 15.2% rise. Whey prices also increased significantly; the whey index surged 9.9% to €800, with Dutch whey up 4.9% and German whey up 9.2%. French whey prices rose by 16.8%, amounting to a yearly increase of 32.9%.

ProductCountryPrice ChangeCurrent Price
WMPGermany+3.0%€4,285
WMPFrance-1.9%€3,930
WMPNetherlands0.0%€4,280

European Cheese Indices Continue Winning Streak: A Deep Dive Into the Market’s Resilience 

European cheese indexes have maintained their upward trend, recording the sixth week of advances. Let’s look at what’s driving the increase in essential cheese categories throughout the continent.

The Cheddar Curd Index grew by €139, or 3.0%, to €4,729. The index is €989 higher than last year, representing an astounding 26.4% year-on-year gain.

In parallel, the Mild Cheddar index increased by €166, or 3.6%, raising the average price to €4,721. This puts the index €935 higher than a year earlier, representing a significant 24.7% increase.

The Young Gouda index had the most significant percentage rise, rising by €263, or 6.1%, to €4,588. This is €1,167 more than in the same time last year, representing a 34.1% rise year on year.

Finally, the Mozzarella index rose, reaching €4,592, up €226, or 5.2%. This is a stunning €1,217, or 36.1%, increase over the previous year.

These significant year-on-year improvements underscore the robustness and sustainability of the European cheese industry, driven by demand and potentially supply-side factors that warrant further investigation. Understanding these reasons can provide valuable insights for future market strategies.

GDT Auctions: A Reflection of Market Nuances 

Global Dairy Trade (GDT) auctions provide an exciting look at market trends, and the recent results were no exception. The GDT index fell 0.4%, reflecting moderate market corrections. The overall amount sold was 38,346 tonnes, with 179 bidders actively engaging, somewhat lower than the previous auction’s 181 purchasers and 34,916 tonnes sold.

Focusing on specific products: 

  • Whole Milk Powder (WMP): The WMP index declined 2.5%, bringing the average price down to $3,396.
  • Skim Milk Powder (SMP): In contrast, SMP performed well, with the index rising by 4.5% and an average winning price of $2,753.
  • Cheddar: Cheddar’s index saw a modest increase of 0.9%, showing stability within its segment.
  • Mozzarella: This category saw a significant boost, gaining 7.0% and reaching an average price of $5,145.
  • Lactose: Lactose prices declined notably, dropping by 8.9% to an average of $863.
  • Butter Milk Powder (BMP): BMP also showed strength, climbing by 8.4% to an average price of $3,024.

China’s Farmgate Milk Prices: A Small Decline with Big Implications 

China’s farmgate milk prices fell slightly in August, which may not seem noteworthy initially but has wider consequences for the dairy sector. The average price in August fell to 3.21 Yuan/kg, down from 3.22 Yuan/kg the previous month. This 0.1 Yuan/Kg loss represents a 1.1% month-over-month decrease.

The reduction is much more pronounced compared to the previous year. The current average price is 14.6% lower than last year. To put things in perspective, the average price was far higher 12 months ago. Several variables might be at work here, including changes in domestic demand, manufacturing costs, and potential changes in consumer behavior.

What does this indicate for the market in the future? For example, Chinese dairy producers may experience lower margins, leading to decreased output or higher efficiency. It also emphasizes the global dairy supply chain since variations in one of the world’s major dairy markets may have far-reaching consequences worldwide. Watch these data; they might be a warning sign for more significant market developments.

Global Milk Collections: A Mixed Bag in 2024 for Italy, Spain, Ireland, and Australia 

When we examine the milk-collecting statistics, it is evident that Italy, Spain, and Australia had different outcomes in 2024. Let’s go into the details.

Beginning with Italy, the figures reveal a rise in milk production for July, reaching 1.09 million tons, up 0.7% year on year (Y/Y). Provisional statistics for May suggested 1.18 million tons, a 1.3% yearly increase. Notably, April collections were revised higher to 1.17 million tons, representing a 2.0% increase over the prior year. Italian milk collections in the first half of 2024 were 6.87 million tons, marking a 1.8% yearly rise.

Next, Spain produced 628 thousand tons (kt) of milk in July, up 1.3% from 621kt the previous year. Milk collections for 2024 have already reached 4.47 million tons, representing a 2.0% increase year over year. When we examine milk solids, we observe milkfat levels of 3.64%, somewhat higher than last year’s 3.62%. Protein content remained at 3.29%, unchanged from July of the year. As a result, in July, Spanish milk solid collections were 44kt, up 1.5% year on year, for a total of 317kt in 2024, a 1.5% increase yearly.

Irish milk collections fell 1.3% in June, reaching 1.06 million tons. Despite this decrease, milk fat content grew slightly to 4.01% from 3.98% the previous year, while protein level increased to 3.42% from 3.39%. Cumulative milk collections for 2024 are down 5.6%, reaching 4.48 million tons. Similarly, milk solid collections declined by 0.5% year on year in June, bringing the total down 5.2% to 338kt. Irish dairy producers have challenges in adjusting to changing market circumstances.

Finally, Australia’s reported monthly milk collection was 597kt, a 1.6% rise from 588kt collected a year ago. Milk collections were 4.47 million tons this year, a 3.9% increase from the previous year. Despite a slowing growth rate of the prior season’s 3.1%, milkfat remained steady at 4.22% yearly. On the other hand, protein content increased marginally, from 3.46% last July to 3.48% this July. As a result, milk solid collections for the month were 46kt, up 1.8% year on year, and the cumulative total for the year was 351kt, a 4.4% rise year on year.

The Bottom Line

This week has been a frenzy for the global dairy industry. EEX and SGX futures performed mixed, with Butter and SMP experiencing substantial trading volumes and price moves. European dairy commodities, notably cheese indices, continue to rise, and significant rises have been seen. The Global Dairy Trade (GDT) index fell slightly, with mixed results across various products. Meanwhile, China’s farmgate milk prices fell, contrasting with the continuous gains in European and Oceanic collections.

Being well-informed is helpful and vital in an industry where pricing and trends change quickly. Knowledge enables you to manage these oscillations and make sound choices that substantially influence company business. Are you staying current on the newest market insights to remain ahead of the competition, or are you in danger of slipping behind in this changing landscape?

Learn more:

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Bullvine Daily is your essential e-zine for staying ahead in the dairy industry. With over 30,000 subscribers, we bring you the week’s top news, helping you manage tasks efficiently. Stay informed about milk production, tech adoption, and more, so you can concentrate on your dairy operations. 

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European Dairy Prices Soar: A Four-Week Winning Streak

Stay ahead with the latest dairy market trends and stats. Ready to elevate your dairy business?

Summary: The past week in the dairy industry has been characterized by robust trading and significant price movements across various futures markets. EEX saw a total of 5,930 tonnes traded, with notable activity in butter and SMP futures. Meanwhile, SGX futures witnessed an impressive 11,411 tonnes traded, spearheaded by WMP. European quotations and cheese indices continued their upward trends, marking the fourth and fifth consecutive positive weeks, respectively. Fonterra’s GDT Pulse Auction also saw substantial price hikes, while strategic volume adjustments were made ahead of GDT TE363. On the production front, milk collection data for July presents a mixed global outlook, with varying trends across key regions. European butter prices have risen by over 70% last year, indicating significant changes in the dairy market. Dairy producers must stay updated on market trends and data to make informed production, pricing, and investment decisions. The European Energy Exchange (EEX) has seen increased trading activity, with 5,930 tonnes of butter, 3,165 tonnes of skimmed milk powder (SMP), and 50 tonnes of whey moved last week. Butter futures on the EEX rose by 1.8% for the seventh week in a row, raising the average price to €7,535. SMP futures rose by 0.3%, bringing the average price to €2,683, and whey futures rose 7.0%, increasing the average cost to €975. SGX dairy futures experienced robust trading and price jumps, with Whole Milk Powder (WMP) leading the way. European quotes show a persistent increasing trajectory, making this the fourth consecutive positive week for all essential dairy products. Cheese indices show a sustained rising trend for important kinds, with the fifth consecutive week of advances. Stay informed and ahead of the curve with these market insights, ensuring your operations remain competitive and profitable in a dynamic global dairy market.

  • Total traded volume on EEX last week was 5,930 tonnes, with significant activity in butter and SMP futures.
  • SGX futures saw an impressive 11,411 tonnes traded, with Whole Milk Powder (WMP) showing the strongest performance.
  • European quotations and cheese indices continued their upward trends, marking the fourth and fifth consecutive positive weeks, respectively.
  • Fonterra’s GDT Pulse Auction experienced notable price hikes.
  • Strategic volume adjustments were made by Fonterra ahead of GDT TE363.
  • Mixed trends in global milk collection data for July, with variations across key regions.
  • European butter prices have risen by over 70% compared to last year.
  • Dairy producers should stay updated on market trends and data to make well-informed decisions.

Have you noticed the remarkable surge in European butter prices, which escalated by over 70% last year? This substantial shift in the dairy market underscores the pressing need for producers to stay abreast of market trends and data. Understanding these fluctuations is crucial for making informed production, pricing, and investment decisions. In the increasingly unpredictable global dairy market, having the correct information at your disposal could be the key to thriving rather than just surviving.

Surging Trades and Rising Prices: EEX Dairy Futures on the Move

The European Energy Exchange (EEX) has seen increased trading activity lately, with 5,930 tonnes (1,186 lots) moved last week. This comprised 2,225 tonnes of butter, 3,165 tonnes of skimmed milk powder (SMP), and 50 tonnes of whey. The trade volume peaked on Wednesday, with 3,080 tons changing hands.

Butter futures on the EEX rose for the seventh week in a row by 1.8%. This raised the average price during the Sep 24-Apr 25 period to €7,535, despite modest reductions in the October 24 and April 25 contracts. SMP futures, on the other hand, rose by 0.3%, bringing the average price to €2,683 over the same future strip. Meanwhile, whey futures rose 7.0%, increasing the average cost to €975.

SGX Dairy Futures: Robust Trading and Price Jumps

Last week, SGX activity fluctuated significantly. A total of 11,411 lots or tons were exchanged, with Whole Milk Powder (WMP) leading the way. WMP saw 9,126 lots change hands, cementing its status as a significant participant. The average price for WMP for the Sep 24-Apr25 curve rose 3.1% to $3,543.

Skimmed Milk Powder (SMP) also had an active trading week. With 1,960 lots traded, the average price rose 1.3% to $2,838. This upward trend suggests that SMP will continue to be in high demand in the future months.

Anhydrous Milk Fat (AMF) traded 200 lots, resulting in a 4.3% increase in the average price, currently $6,947, from September 24 to April 25. With a slightly smaller number of 125 lots exchanged, Butter saw the most significant relative price gain of 4.8%, hitting $6,661.

These patterns in the dairy futures traded on SGX paint a positive picture, fueled by sustained demand and favorable trading conditions. This optimistic market sentiment should reassure dairy producers about the current market conditions.

European Quotations Show Steady Rise: Fourth Consecutive Positive Week for Key Dairy Products

Recent trends in European quotes have shown a persistent increasing trajectory, making this the fourth straight positive week for all essential dairy products. Butter prices have risen by 2.7%, and the index is currently at €7,600. German butter had the biggest gain, up 4.7% to €7,800. This is a considerable increase of 72.5% above last year’s average butter price of €3,193.

Skimmed Milk Powder (SMP) has also seen consistent improvements, with a 1.2% rise taking the index to €2,467. German SMP witnessed the most increase, jumping by 3.1% to €2,515. SMP prices have risen by 11.9% yearly, averaging €262 more than the previous year.

The whey market has performed exceptionally well, with the index rising 6.7% to €728. Dutch and German whey prices increased by 10.8% and 9.2%, respectively. Whey prices are up 28.4% from a year earlier, showing a solid demand spike.

Whole Milk Powder (WMP) has also performed well, up 3.6% to €4,148. Dutch WMP had the most significant increase at 4.9%, hitting €4,280. Overall, WMP costs are 23.7% more than last year, with the average price increasing by €795.

The European dairy industry is experiencing considerable price hikes, indicating more robust demand and tighter supply conditions than last year.

European Cheese Indices: Consistent Gains Over Five Weeks

Cheese indices show a sustained rising trend for important kinds, with the fifth consecutive week of advances. Cheddar Curd rose by €154 (+3.5%) last week to €4,590 and is now €826 (+21.9%) higher than last year. Mild Cheddar followed suit, rising €89 (+2.0%) to €4,555, representing a €719 (+18.7%) year-over-year rise.

Young Gouda also excelled, rising €204 (+5.0%) to €4,325, exceeding last year’s levels by €891 (+25.9%). Finally, Mozzarella substantially increased, rising €176 (+4.2%) to €4,366, now €999 (+29.7%) higher than the previous year. These indexes point to a positive market attitude and optimistic prospects for European cheese variants.

GDT Pulse Auction (PA059) Sees Notable Price Hikes and Vibrant Trading Activity

The last GDT Pulse Auction (PA059) showed a considerable increase in pricing and engagement. The average winning price for Fonterra Regular C2 WMP was $3,560, up $50 (+1.7%) from the previous GDT auction and $300 (+9.2%) from the prior pulse sale. Fonterra SMP Medium Heat – NZ likewise saw an increase, hitting $2,670, up $70 (+2.7%) from the previous GDT auction and $120 (+4.7%) above the last price pulse. Participants showed strong interest, with 51 bids vs 49 in the last pulse, acquiring 1,972 tons across all items. This somewhat diminishes the previous pulse auction’s 2,000 tons sold while demonstrating robust and sustained market involvement.

Fonterra’s Strategic Volume Adjustments Ahead of GDT TE363: Key Reductions and Steady Forecasts

Fonterra recently issued its volume projection for the next GDT TE363 event, which included some significant changes. The most noteworthy adjustment is a drop of 1,500 tonnes of Whole Milk Powder (WMP), lowering the overall 12-month volume to 349,753 tonnes. This drop reflects market demand and demonstrates Fonterra’s response to current trends.

Meanwhile, the predicted quantities for Skim Milk Powder (SMP) remain steady, representing an 18.7% increase over the August event, with 9,450 tons available this week. Similarly, cream group quantities remain unaltered in the forecast and prior event, with a maximum of 5,935 tonnes, which aligns with 12-month predictions of 99,895 tonnes.

Eight hundred forty tons of Cheddar will be available, showing Fonterra’s thorough rephrasing to fit market demands better. Fonterra’s strategic modifications to product levels for TE363 attempt to optimize supply in response to observed market dynamics and expected demand.

Mixed Signals: Global Overview of July Milk Production Data

The most recent milk production figures from several nations show a mixed picture of increases and decreases yearly. Let us start with Poland. StatPoland stated that milk output in July was 1.13 million tons, a 0.9% rise yearly. Cumulative output for 2024 is 8.04 million tons, up 3.7% yearly. The raw milk price in July was €45.55/100kg, representing a 4.0% increase year over year.

In the Netherlands, milk collections for July were recorded as 1.15 million tons, a 3.1% decrease from the previous year. In 2024, cumulative collections were 8.19 million tons, a 1.6% decrease from the previous year. Milkfat content increased slightly to 4.30%, compared to 4.29% last year.

Milk output in the United Kingdom fell 0.1% year on year in July, exceeding expectations of a 0.3% drop. Cumulative output was 9.23 million tons, a 0.1% decrease yearly. The milkfat concentration was lower at 4.10%, compared to 4.14% last year. Farmgate milk prices increased by 10.7% yearly, reaching 39.48 pence per liter.

In New Zealand, Fonterra reported July milk collections of 20.6 million kgMS, a 9.0% increase yearly. Season-to-date receipts were 35 million kgMS, up 4.1% from the previous season. North Island collections increased 10.3% yearly to 18.9 million kgMS, while South Island collections decreased by 3.6% yearly to 1.7 million kgMS.

The Bottom Line

The most recent statistics from EEX and SGX futures highlight dairy commodities’ volatile but promising picture. The market demonstrates durability and development potential as butter and SMP futures on EEX rise. In contrast, European quotes and cheese indices rise steadily. The variable milk production data from Poland, the Netherlands, the United Kingdom, and Fonterra provide a nuanced perspective that deserves careful consideration.

Dairy producers must keep up with current market movements. Understanding future pricing and production levels helps them make educated choices that optimize their operations and increase profitability. This market knowledge may significantly impact modifying manufacturing tactics or planning future investments.

Are you ensuring your farm’s strategy matches these market realities? Stay proactive and informed, and drive your operations to success.

Learn more:

Join the Revolution!

Bullvine Daily is your essential e-zine for staying ahead in the dairy industry. With over 30,000 subscribers, we bring you the week’s top news, helping you manage tasks efficiently. Stay informed about milk production, tech adoption, and more, so you can concentrate on your dairy operations. 

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