UK Wholesale Prices

Published 27 September 19

Market views taken for trade occurring between 1 to 27 September. 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.

Wholesale markets picked back up in September, following the summer lull. Cream was particularly volatile in September, but butter and SMP also saw upward movements. Currency also had an influence. The value of the pound rose through September, which in turn reduced the value of euro prices once converted to sterling.

Cream prices moved a lot in September, climbing up to around £1,700/t by the middle of the month but dropping back down to roughly £1,500/t before the end, with some reports trading more in the £1,400/t-£1,600/t range for the month. Reports suggest the mid-month increase was driven by a flurry of demand for fresh cream from the continent. Overall the average price for the month was £1,590/t.

There was a rise in butter prices this month, following seven months of declines. The market attempted to follow the rising cream price, although reportedly is still relatively quiet. Most buyers are already covered for the rest of the year. High stocks are reportedly also reducing trade, and where product is traded there are two tiers of pricing for fresh and stored product.

SMP prices firmed through September, with reportedly good demand, although the increase was somewhat tempered by currency movements. SMP prices are now sitting at their highest level for five years.

The cheddar market continued to remain stable, with our price still unchanged since April.

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 27 September. 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.