Following several days of bidding on the latest milk powder tender issued by the Algerian buying agency, Office National Interprofessional du Lait et de Produtis Laitiers (ONIL), for Skimmed Milk Powder (SMP) and Whole Milk Powder (WMP), for delivery in December-February, the tender closed on 15th November 2023. ONIL tenders continue to be a key indicator of international demand because Algeria is one of the leading consumers and importers of dry milk powder worldwide.
According to multiple market sources, the SMP price range for this tender was reported around $3,050/mt CFR Algeria, and price levels for WMP have been reported to range from $3,300-3,500/mt CFR Algeria. While the WMP demand was largely covered by New Zealand’s suppliers, SMP volumes have mostly been covered by European suppliers.
EU market sentiment remains mixed with a bullish tone, while some market participants anticipate further price increases linked to the tight availability of liquids. However, other market participants anticipate a neutral or slightly bearish market sentiment, as uncertainty surrounding international demand remains and domestic buying interest has been reportedly sluggish during the recent weeks.