The global markets for Butter show an unseen degree of volatility, with 100’s of €’s being added or subtracted from the market price within hours. We will leave it up to you to decide if that is healthy, but it is certainly exciting to report on. The latest numbers look bearish, but that might change again in an instant.
FYI: Check out all the dairy products Vesper covers.
Regarding proteins, the downward direction has just continued for several months in the higher protein market like WPC80, while products like SMP, SWP, and Lactose have hit calmer and more stable waters. For SMP, however, we cannot exclude that we might be going down in price again soon.
We repeat our story about the fundamentals, which still point to prices being under pressure until summer this year when milk production growth will go into negative territory again. As seen in the last weeks, however, the prices move faster on sentiment than they do on fundamentals. Meaning that there can be a lot of price movement in the months to come, without any clear fundamental indicator that can be pointed out as the cause. With that in mind, August 2023 is still very far away…
Quick tip: Vesper has multiple free commodity calculators available on its’ website. I.e. if you are in need to calculate the whole milk powder price, if you require a protein price differential calculator, and much more.