Market Report: Steady dairy commodities through the summer

Dairy commodity prices remained stagnant between July and August, with the exception of skimmed milk powder and bulk cream, which eased slightly.

“In the butter market, supplies have remained limited despite higher milk supplies, as the manufacture of cream and cheese has been taking first call on the available milk,” said a recent DairyCo report.

“Wholesale prices have been virtually static, with stocks of intervention butter sold off in June and early July still being cleared at discounted prices.”

Bulk cream prices dropped by £10 to £1420/t in August, but were supported by high demand for retail cream in the soft fruit season. Skimmed milk powder values dropped by £50 to £1900/t, due to a low seasonal ebb in manufacturing demand.

Retail sales of cheddar were higher than in 2009, but the catering and industrial markets were less buoyant, said the report. However, all commodity prices remained well above last year’s equivalents. Activity is expected to liven up in September when there is some expectation of higher prices.