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Market Report August 2013

Butter

With Private Storage Aid now closed for this year, with butter volumes less than 2012 levels and much of the volume already reserved it is not anticipated any significant volumes will appear available for sale on the open marketplace. Further upward movements on butter pricing have already taken place as a result of high cream prices being paid by continental buyers despite the holiday period – usually seen as a very quiet and stable time. It is  anticipated that when UK buyers return to their desks in early September there will be requests for covering forward until the end of the year.

Cheese

Milk has recently been diverted from cheese manufacture into the production of milk powders for export and, coupled with an extreme tightness of cheddar stocks, this will only exacerbate the situation and cause prices to rise further.  Mature cheddar and coloured varieties of both mild and mature cheddar are certainly in very short supply.

 

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