Signs of life in the SMP market

Published 22 May 18

Prices have recently firmed on the SMP market, with EU average prices tentatively, but consistently, rising week on week since 8 April, and a marginal upturn in UK wholesale SMP in April. EU feed grade SMP prices have also risen.

Further evidence that the market is firming, and buyers are willing to pay more to secure future supplies can be seen from the recent bullish sentiment on other markets.  Settled prices for June to September futures contracts on the EEX exchange have been on the rise since mid-April. Additionally, at the Global Dairy Trade auctions, the price indexes for June-September SMP contracts have been rising for the last three events (since 17 April).

SMP forward curve

Demand for SMP is even reaching intervention stocks, where sales are picking up speed with almost 42,000 tonnes sold in the latest tender. The minimum accepted bid for the latest tender was €1,155/tonne, over €100/tonne more than the previous two tenders, but still below the average EU price for feed grade SMP.