The EU cream market sentiment was reported as mixed during this week’s assessment period. Following four consecutive weeks of price increases, market prices remained around the previous weeks’ levels. While strong demand out of southern Europe has supported the recent price rises, buying interest fell slightly during the week, with most buyers having covered their spot demand. Furthermore, declining milk availability has started to negatively impact cream availability, while supply remains stable; as milk fat levels remain above expectations, it is expected that supply will start to fall in the coming 2-3 weeks in line with seasonal expectations. The MBP for European Cream EXW 40% [Mintec Code: ED25] was down €50/mt on the week, at €5,350/mt.
Similar to the cream market, buying interest for skimmed milk concentrate (SMC) declined during the week. The weak demand surprised several market participants across the EU, as the upcoming summer holiday season usually supports the demand for fresh SMC. SMC is primarily used during the summer in the production of ice cream and yoghurt. Both products see strong seasonal demand over the summer holidays, mainly from the hospitality and food service sector. The MBP for Skimmed Milk Concentrate FCA Europe [Mintec Code: SMCE] was assessed at €1,950/mt on 8th June, down €275/mt on the week.