UK cream prices up before holidays
Cream prices had another exciting month in November, with a steadier start but prices then spiking in the latter weeks, reports the UK’s Agricultural and Horticultural Development Board (AHDB).
The lift came from a surge in demand for fresh cream from the Continent, where buyers needed it for Christmas products. Some reports had prices rising as high as £1,700/tonne (€1994/tonne), but this peak only lasted a few days and reports suggest prices have dropped back a bit since then. The magnitude of the price increase could be a sign that the actual volumes being traded on the spot markets were thin.
There was disconnect between the cream and butter prices this month, which is a fairly usual effect of the festive demand for cream. The gap between the two prices made it economically difficult to buy cream for butter making as the butter would not make a return at the current spot prices. Those who can draw on stocks were better able to compete. Skim milk powder prices continued to firm in November, rising steadily through the month, bringing another five-year high.