UK Wholesale Prices

Published 26 July 19

Market views taken for trade occurring between 1 to 26 July. Prices reported are indicative of values achieved over the reporting period for spot trade (excludes contracted prices).

The following prices represent an indicative average of UK wholesale markets. The “average” prices should be used to track trends while the commentary will contain prices seen through the month.

All prices quoted are in £/tonne.

Summer lull comes to wholesale markets

Wholesale markets were relatively quiet this month. There is some expectation of this in July and August as many traders go on holiday, especially on the continent, and this can lead to a slight dip in prices until they return. However high stocks and strong production do continue to weigh on the markets.

Cream markets were bearish overall, declining through the month. However a few reported stable to firming prices either through the month, or at the start before coming down. By late July prices were as low as £1,300/tonne for some, though not everyone offered this price was willing to sell at it.

Spot trade continues to be sparse for butter, with prices continuing to drift downwards in the face of high stocks and low demand. Lacklustre demand also means there’s no relief for the cream market to be found here.

SMP markets have had small movements but are overall fairly steady, with trade reported as on the thin side. Without a rising powder price to counterbalance falling fat prices, producer returns for combined butter and SMP (as measured by AMPE) have come under pressure.

There were some reports of declines in Cheddar prices in July, although given the thinness of trade there was not substantial volumes behind these movements.  Good export demand is reportedly helping prevent prices from slipping too far.

UK Wholesale Table
                          UK Wholesale Graph              

Notes: Prices have been compiled by talking to dairy product sellers, traders and buyers. Panel discussions on market conditions and prices covered trades agreed for the period 1 to 26 July. The published prices will not necessarily match the actual price received by a milk processor as this will depend, amongst other things, on the proportion of product that is sold on the spot market and the proportion sold under longer term contracts and at what price this is done.