Dairy commodity prices have remained steady across European spot markets over the last week as trading for the autumn/winter months is yet to kick off in earnest. Market activity is reported to be quiet overall but trading should begin to accelerate over the coming weeks.

On cheese markets, prices across Europe remain unchanged in the last week but overall are in a healthy position. Spot prices for mozzarella and gouda are trading at €3,350/t and €3,200/t respectively, while cheddar is priced about €3,250/t ex-factory.

The heatwave which hit much of Europe this summer is supporting prices for cheddar, gouda and mozzarella, which use up a lot of milk.

Butter prices eased slightly over the last week and are trading around the €5,500/t mark. Negotiations are continuing between wholesalers and supermarkets in Germany for the September/October retail butter price. A price close to €6,000/t is expected.

On powder markets, the price of skimmed milk powder (SMP) continued to make upward progress this week. SMP prices reported to the Dutch dairy board have risen bit by bit over the last month and are now trading above €1,600/t for the first time since last October.

However, a note of caution. The European Commission held a tender auction for some of its SMP intervention stockpile on Tuesday this week and the results from that are likely to have a big say on the future direction of market prices moving into the back end of the year.