Expected stabilization on the milk market
The milk market in the first decade of December was expectedly characterized by stability. Although the average values in the section of grades showed a minimal increase, the range remained unchanged.
This is reported by Yana Linetska, the analyst of the Association of Milk Producers.
However, since the beginning of November, due to the deterioration of the global situation and interruptions in electricity supply, the price trend for Extra Grade milk began to slow down, and in the second half it practically stopped. The prices of Higher Grade milk and Grade I still had a tightening effect.
Thus, the average purchase price for Extra Grade milk amounted to 12.18 UAH/kg excluding VAT, which is 0.04 UAH higher than the price at the end of November. The price range, depending on the batch, ranged from 11.78 to 12.50 UAH/kg.
Higher Grade cost 12 UAH/kg, which is 0.05 UAH higher than the price of the previous monitoring. The price corridor was within 11.40−12.30 UAH/kg.
Grade I rose in price by 0.01 UAH — to 11.60 UAH/kg. The price of such milk ranged from 11.27 to 11.91 UAH/kg.
The weighted average price of the three grades rose by 0.03 UAH to 11.92 UAH/kg.
«Today, the market demand is sufficient to absorb the offered milk, which makes it possible to stabilize the market. Although market participants are quite restrained in forecasting, because blackouts and strict restrictions on electricity in the future are not excluded, which will restrain production. In addition, the global dairy market continues to show a downward trend, which will also affect export prices for Ukrainian dairy products. Prices are currently being supported by seasonally low milk production,» — notes AMP analyst Yana Linetska.