Milk production remained high in Europe through July while demand continued to be weak, affected by Ramadan and the holiday season. The euro strengthen against the dollar for most of the month before returning to a downward trend towards the end. However, due to the lack of demand, it provided little support to prices.
EU butter prices fell below the €3000/tonne mark in July. Deals are reported to be slow to progress. Domestic consumption has also slowed, due to the summer holiday season, while exports are struggling to compete with cheaper Oceania product.
Average SMP prices crept closer to intervention levels through the month, with some countries starting to place stock into the scheme.
Emmental prices fell marginally over the month, with production being restricted. Whey prices have fallen significantly over the month with both feed and food quality seeing significant reductions between June and July.
Please note that prices can vary markedly within each market sector: the prices above are intended to give a guide to trends in price changes, but the absolute values experienced in the market place may differ from those shown.
