US butter prices increased 1.8% from May to $4203/tonne due to fairly steady demand and mixed levels of production. EU butter crept up 1.1% to $3325/t as the market balance improved for June. However, EU export demand was still reported to be light as more competitively priced product was available from Oceania. Oceania prices fell 8.5% as export demand from the US slowed due to an increase in its own domestic supply.
US SMP fell to $2047/t, largely due to weak demand. EU prices fell 1.5% with buyers reported to be reluctant to commit to longer term deals in the weak market. Oceania prices fell 5.2% to $2050/t because supply still exceeded buyers’ needs. This was despite large volumes being traded after Oceania received a significant portion of the recent Algerian powder tender.
WMP prices decreased 6.2% in the US as the weak market tone continued. EU WMP fell again, down to $2619/t, due to sluggish export demand. EU manufacturers are reported to only be covering current needs to avoid building stocks. Oceania prices fell 4.7% to $2306/t but there were some reports of orders for later in the year slowly creeping in.
Cheese prices in the US increased to $3797/t due to good domestic demand. Prices fell 1.8% in Oceania as recent trade negotiations with Japan saw increased competition from the EU.
