EU Wholesale Prices

Published 11 July 19

Wholesale markets in June largely saw declines with the exception of SMP. Reportedly high stocks still overhang portions of the market. Lower export demand, particularly for whey markets, left prices needing to fall to find buyers. The Global Dairy Trade (GDT) Price Index declined 0.4% at the recent auction (02 July) amid high volumes of products offered.

Strong demand has supported prices in SMP markets recently, with the last of the intervention stocks sold at the recent tender dated 18th June. The lower end of the market should now start to move upwards, helping to support prices. The recent bouts of record temperatures across Europe stimulated some demand as processors moved to cover themselves for the period. SMP prices are up 1.1% on the month, and 33% compared to a year ago.

However, the increase in demand did not filter through to WMP markets. With reportedly adequate stocks, WMP saw declines on the back of falling fat prices. WMP prices were down 0.7% to €2,934 per tonne on average. Similarly, sufficient supplies of butter has led to many supplies being reportedly covered for the imminent future. This lessened demand has seen prices fall to €3,986 per tonne, a slide of 4.1% on the month as the butter premium over global markets narrowed.

The ongoing African Swine Fever crisis has dampened import demand for its feed markets. As a result, much of this has filtered through to whey markets which fell to €789 per tonne. A decline of 3.1% since May has left whey prices falling to find new buyers.

Continuing from last month, average cheese prices eased marginally during June. The reductions largely stemmed from declines in Cheddar and Emmental prices. Cheddar dropped 1.3% to €3,113 per tonne, as reportedly high stocks are being held in anticipation of Brexit.

EU Wholesale Table

Please see text above and notes below.

EU Wholesale Graph

Please note that prices can vary markedly within each market sector: the prices above are intended to give a guide to trends in price changes, but the absolute values experienced in the market place may differ from those shown.