SMP skimming intervention price

Published 22 July 15

EU skimmed milk powder (SMP) prices have edged closer to intervention level in recent weeks and Lithuania has now offered 197 tonnes into the scheme. The EU weekly average price is €62 above the €1,698/tonne intervention price, with quotes in some individual member states now very close to it.

At the moment, market commentators suggest that many European manufacturers are managing stocks and cash-flows themselves rather than offering product into the scheme. However, should the scope to do this start to run out we may see more SMP sold into intervention.

At the latest GDT auction on 15 July and adjusting for currency, average SMP prices for all six contract periods were below intervention level, showing the pressure global prices are under. This suggests there may be even more pressure on the way for the EU market from New Zealand and Australia, as previously reported. If so, the recent proposal to extend access to intervention stores and private storage aid could be very welcome.

SMP prices 6-Jul to 12-Jul

 

€/tonne

€/tonne above intervention price

Germany

1,735

37

France

1,725

27

Netherlands

1,700

2

UK*

1,792

94

EU average

1,760

62

*2 weeks ending 10-Jul           Source: Eucolait, PTF