Market Update - March 4, 2010
USDA European Reveiw
WESTERN AND EASTERN EUROPE
WESTERN OVERVIEW: The effects of a cold winter season continue to impact milk production in Western Europe. Seemingly, most all countries are seeing milk intakes trending lower in recent weeks with intakes more stable this week. Trade indications of milk output changes this year in selected countries showed Ireland down 10%, France down 2%, Germany lower, and Austria steady. Localized rains were heavy and caused some flooding in parts of France, yet the impact on milk output was not noticed. Intervention is not receiving any current dairy products and current stocks are closed. European butter prices are steady to slightly higher with an unsettled market tone. Production is mainly steady with the recent period and market conditions generally balanced. Exporting is light. Whey prices moved slightly lower, although the market tone is stable. Some of the price adjustments are due to lower currency valuation. Whey output is steady to trending higher where cheese production is building. Whey demand is mostly along projections for local sales, while exports are mixed. European skim milk powder market prices are steady to higher and the market undertone is firmer than in recent weeks. For Europe, production is steady to lower with milk moving to cheese production. Whole milk powder prices are unchanged to slightly higher. The market undertone is mostly steady, helped by pricing levels in other regions. Traders and handlers still expect that European SMP and WMP will be utilized to fill a recent tender.
EASTERN OVERVIEW: Eastern European milk production levels are slowly improving following relatively poor winter conditions characterized by cold temperatures and heavy snowfalls. Milk intakes at processing plants remain below projections. Finished products are in tighter positions than expected and buyers are reaching to other countries to
secure dairy products.
