UK skimmed milk powder (SMP) prices  increased  slightly during the week, while the market sentiment was reported mixed. However, market activity and trades remain limited; the buying activity reported  in the market is largely generated by traders building  a long position in anticipation of further price increases during H2 2023. One market source commented, “we are seeing the offers changing every week; lower offers get pulled continuously from the market. It remains uncertain how much open demand remains for H2; however, some of our key buyers have not  committed to as much volume as usual thus far.” The MBP for Skimmed Milk Powder EXW United Kingdom [Mintec Code: JS43] was assessed at £2,000/mt on 25th May, an increase of £25/mt compared to the previous week.

The SMP market sentiment remained slightly bullish during this week’s assessment period (18th May 2023 16:00 BST – 25th May 2023 15:59:59 BST); prices across the EU edged upwards, while market activity remained limited. Traders are still the primary participants in the market, as processors remain reluctant to sell large volumes and end users stay off the market, postponing buying decisions. Market activity on the international market was reported sluggish again throughout the week. However, some limited activity was reported in the Middle Eastern market. […]

[…] One processor commented, “buyers continued to be largely out of the market; the limited buying interest is reportedly generated by traders currently. However, we are aware that several of our big clients have not committed their volumes for H2; with prices now starting to increase and milk volumes anticipated to decline, it will be interesting to see how much longer they remain off the market.” A buyer commented, “while we also see a slightly bullish sentiment for fats, we currently have no concerns regarding the protein market. Yes, we still need to cover some volumes for H2, but the demand uncertainty surrounding end-users remains strong. We are trying to only source as much as we actually need, as the high inflation continues to make consumer demand predictions difficult.” For reference, the MBP for Skimmed Milk Powder EXW Europe [Mintec Code: J117] was assessed at €2,550/mt on 25th May, up 5% on the week.

Further strong skimmed milk concentrate (SMC) price increases have supported the recent upward trend in SMP prices throughout the week. Like the week prior, the price of SMC continued to skyrocket during this week’s assessment period. Increased demand for SMC is intricately linked to the upcoming summer and holiday season. SMC is primarily used during the summer in the production of ice cream and yoghurt. Both products see strong seasonal demand support over the summer holiday season, adding demand to the hospitality and food service sector. The MBP for Skimmed Milk Concentrate FCA Europe [Mintec Code: SMCE] was assessed at €2,225/mt on 25th May, up €350/mt on the week.