EU Wholesale Prices

Published 10 July 18

Hot weather across the continent has proved challenging, with Germany in particular reporting reduced production from late May into June. However, some analysts are currently still forecasting an overall production increase in 2018. Rapid price increases through May meant June prices started a step above the May average, but have grown little since the start of the month.

Butter prices are up 2.6% on the month, but this is notably less than the 9.4% rise seen a month before. In weekly terms the price was in decline for the latter half of the month. In part this could be driven by a reported reduction in demand as consumers reacted to increasing retail prices. Additionally, July is the start of a new butter contracting period for many dairies and retailers, with some still negotiating into the month itself. This could sway prices if buyers push hard for reductions.

Powder markets have been relatively calm. SMP buyers are tending towards ‘wait and see’, and although prices are up 5.2% on April, week-to-week movements within May were marginal.  WMP production has softened slightly alongside EU demand to keep the market in balance, although prices still rose 2.5%.

Average cheese prices rose marginally on the month at 0.9%, with prices fairly steady for most types. Cheese production levels are expected to stay high as the markets are absorbing the cheese at decent price levels.

 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.