Sales of SMP intervention stocks slump

Published 25 July 18

Demand for SMP intervention stocks dwindled at the most recent tender, with only 2,408 tonnes sold at the minimum price of €1,125/tonne. This is the second lowest volume sold in a tender this year and a considerable drop off from volumes sold at the previous three tenders

Prices offered for the stock varied between €958-€1,200 per tonne, the narrowest range between bids seen this year. However, the small volume of sales suggests most of the offer prices fell below the minimum price set by the Commission.

The minimum price set by the Commission for intervention stocks has generally tracked movements in both fresh and feed grade SMP markets. In the week of the July tender, movements in two markets diverged with feed grade SMP prices down 11% (€150/tonne) from the time of the previous tender and fresh product prices down by only 2% (€19/tonne). Interestingly, the minimum intervention selling price fell by 6% (€70/tonne) from the previous tender, equal to the average of the movements in the two markets.

SMP price comparison