Market Update
Posted on: 17/04/20
10 days ago, spot milk was 5ppl or less and some farmers were told to dump full days collections with no contribution from their processor. Today, there is no one dumping their daily production and spot prices are 15/16p and cream has risen to 90p kg.
In an article (www.milkprices.com) earlier this week reported gains in the futures markets including the average price of butter up for the first time in 5 weeks (+16 euros tonne), SMP up 53 euros a tonne from a 4 week down turn.
The result is a net UK MFE of 21.41ppl. Nothing to trumpet about but it’s a U turn in the right direction and for the trade distress milk could be behind us as several believe we have already passed the dark low point. Note that does not mean further farmgate milk price reductions will not happen because they will.
The COVID19 effects on the fresh UK dairy market are changing almost daily and it’s by no means all downside.