AMPE and MCVE continue heading South
Posted on: 03/12/18
The November AMPE (27.01ppl) and MCVE (31.06ppl) market indicator prices are the lowest recorded since March and keep slowly sliding down.
AHDB Dairy’s bean counters report there is a clear correlation between these two market indicators and farm gate milk prices with a typical 3 month delay, which does not bode well for February 2019. Note, neither AMPE nor MCVE figures include the cost of transport from the farm to the dairy.
In terms of wholesale markets whilst the seasonal boost in cream demand will provide limited short term relief it looks likely to be downhill post Christmas. As EU intervention stocks have declined fresh SMP prices have nudged up to their highest point in 2018, which is one positive sign and fingers crossed it marks a U-turn in SMP prices.
Meanwhile, cheddar prices continue to trend south.
All in all it’s not a very rosy picture to start 2019.