Whey Finance

Weak performance for European listings

Last week was “very weak” for European dairy quotes, according to multinational financial services firm StoneX.

Average prices for butter, skimmed milk powder (SMP), whey and whole milk powder (WMP) all fell.

The butter index fell €152 or 2.1% to €7,051, driven by declines in German, French and Dutch quotations.

However, it should be noted that the average price of butter is still 51% above what it was at the same time last year.

The SMP fell almost 2% to €3,628, but again this index remains 29% higher than the same period in 2021.

There was a 2.5% drop in the average whey price to €938, which is now 5.4% below what it was 12 months ago.

StoneX noted that the decline was less steep for the WMP index which fell 0.4% to €4,882. The average WMP price is still 43% above October 2021 levels.

Last week was also mostly negative for the weekly European EEX cheese indices, with all categories except cheddar curd posting losses.

StoneX dairy analysis also noted that milk collections in Italy in August were down 3% year-on-year.

Collections for the eight months to August now total 8.89 million tonnes, down 0.3% from last year’s 8.92 million tonnes.

Eurostat said fat was 3.74%, while protein was 3.38%.

In France, collections in August amounted to 1.88 million tonnes, a drop of 2.5% compared to last year. The fat content was 3.93% and the protein content 3.16%.

In Belgium, milk production for the month of August is up by 3.3% compared to the 363kt collected 12 months earlier and a new record for Belgian milk production in August.

Fat came in at 3.99% from 4.09% in 2021, while protein content was 3.33% from 3.39%.

After two consecutive year-on-year declines in June and July, milk collections in Argentina increased by 0.6% or 1.09 million tonnes in August compared to 2021.

Meanwhile, the United States Department of Agriculture (USDA) has increased its US milk production forecast for this year and 2023.

The forecast for 2022 has increased to 102.92 million tonnes, which would see production increase by 0.3% compared to the volume collected in 2021.

USDA forecasts production to increase 1% in 2023 to 103.96 million