UK cheddar was fairly firm with traders carrying on 'wait and see' strategy
Staff Writer |
The Beast from the East parts 1 and 2, as well as Storm Emma caused short-term issues to milk collections during the month. However, with the continual poor weather comes little/no grass growth, waterlogged fields and delays to turnout.
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All of which are bringing the expectation of a lower-than average milk production peak this spring.
Despite this, March saw some stability brought back into the wholesale markets, for all products bar cream. Both sides of the trading fence seemed reluctant to commit to deals long term. Some buyers believe prices could fall further in the coming weeks.
However, those who might be looking for longer-term deals are being met by sellers not laden with stocks and therefore, not prepared to promise volumes.
For cream, the week-on-week volatility continues. Some pre-Easter, as well as brief continent, demand saw prices pick up to highs of £2,000 to £2,100. However, prices soon fell back, finishing the month around £1,850.
Traded volumes were reportedly mixed, with some experiencing high levels of trade and others seeing a very tight market. Sentiment surrounding production views appeared to be one of the biggest drivers for price changes.
Butter was relatively stable with little trade done. Unless needed, butter production is not really a favoured option with skim values being so low.
What is being produced tends to have been sold before it is finished, keeping the market tight. However, as mentioned above, the standoff between buyers and sellers has provided the steadiness in March.
It is business as usual with SMP. Values on the continent appeared to be stable around €1,300 with exchange rates affecting UK prices. The latest intervention tender saw just over 4k tonnes sold at a minimum price of €1,050.
Mild cheddar was fairly firm with traders carrying on the “wait and see†strategy. The price for higher quality British cheese held well, while lower quality fell slightly, bringing the overall average down. ■