The Outlook
Posted on: 02/10/18
Stand on prices are now mainstream particularly for November deliveries unless you supply Arla who are still increasing producer prices for October.
As stated last week wholesale markets are under pressure with particularly the cream and butter price in decline, which AHDB report fell by £330 (butter) and £100 (bulk cream) in September. The FCStoneMilkprices.com UKMFE forward price curve has now recorded its 6th consecutive drop with this month (October) having recorded a 5.24ppl drop in that 6 week period. Against these prices SMP nudged up £30 tonne and mild cheddar prices for September were unchanged but the direction is regrettably but firmly south.
It’s now a case that any holds/stand on milk prices for November onwards should be considered a favourable announcement. That’s until someone breaks rank which almost seems inevitable will be in 2018 rather than 2019.