The COVID-19 pandemic continues to wreak havoc across the world’s, economic, social and political systems, catching world leaders in its cross hairs who are being forced to choose between suffocating their economies or saving the lives of their citizens. The only thing that is for certain at this time, is that we will be dealing with the Coronavirus for many more months, possibly even years until a vaccine is found, tested and distributed globally.
As expected, the prices of Dairy commodities have faced a bumpy ride in the past few months. Some of the factors contributing to the price increases were: No intervention stocks in Europe, a striking balance in the supply-demand ratio; strengthening of Euro against USD, increased demands of certain products from Europe due to non-availability in Oceania and an increased demands from large economies like China as they opened again for imports.
With the pandemic keeping the situation unpredictable, it is difficult to say when and if the price tide may change again in near future.
SMP: For the year 2019, France produced app. 28% of the total SMP produced from the EU-28, followed by Germany accounting for 26% of total production.
For the period Jan-July 2020, the EU–28 saw an increase of app. 21,500 MT over LY for the same period
for 2019. EU-28 produced 975k MT of SMP in first seven months of 2020 with the highest production recorded in May 2020 of 155k MT.
For the period Jan-July 2020, France maintained its leading position with 261k MT followed by Germany with 253k MT and Poland third with 108k MT. The three countries contribute to approx. 64% of the total SMP produced in EU–28 for the period of Jan-July (total production being 975k MT).
April recorded the lowest SMP prices so far in the year for Germany and USA with an average of 1,978 Euro/MT FOB and 1,797 Euro/MT FOB respectively. Oceania recorded its lowest prices so far into the year in the month of June with an average of 2,306 Euro/ MT FOB.
SMP from Germany saw an average price of 2,200 Euro/MT FOB as of 30th September 2020 as against an average price of 2,453 Euro/ MT FOB in June and an average price of 2,640 Euro/MT FOB in March 2020.
SMP from Oceania recorded an average price of 2,536 Euro/MT FOB as of 25th September against an average of 2,262 Euro/MT