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Weekly market update (14 Jan 21)
Thursday, 14 January 2021
By Patty Clayton
Trading activity in dairy markets has picked up in the past week, helping to increase prices on spot markets. Higher prices on the continent have kick-started exports, although volumes are low as many exporters are still testing the waters. While paperwork continues to be a challenge, the conclusion of the EU-UK trade agreement has removed uncertainty, and buyers have returned to the markets, boosting demand. In addition, the latest lockdown has reportedly had only a minimal impact on foodservice demand, while providing another boost to retail orders.
While trade on spot milk markets has been thin, loads continued to trade in the 26-28ppl* range. There were reports of prices approaching the 30ppl mark for short notice needs, and similarly, those needed to sell saw prices as low as 25ppl.
Bulk cream prices moved up around 10p/kg in the week as trade resumed after the holiday break, bringing the range to £1.20-£1.25/kg. Increased churning demand has helped to firm pricing, as has strong demand from the continent. The lack of UK bulk cream shipments to the EU has created a shortage, pushing ex-factory prices up above £1.30 for those who are able (and willing) to export.
Butter demand has also been reported as stronger since the new year, with buyers back in the market now there is more certainty around trade with the EU. Higher retail orders on the back of the lockdown have firmed prices, which are now in the region of £3,100-£3,130/tonne.
*spot milk prices are quoted as delivered prices
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