FCStoneMilkprices.comUKMFE: Forward curve posts further gains of over 0.5ppl


Forward Curve Averages:
Prev high: 28th Aug’17 (Butter €5,669/t, £5,268/t / SMP €1,756/t, £1,633/t / €=93p, UKMFE Gross 36.52ppl, UKMFE Net 32.70ppl, UKMFE Total Net 30.70ppl)
Low: 11th Dec’17 (Butter €4,051/t, £3,589/t / SMP €1,503/t, £1,332/t / €=88.58p, UKMFE Gross 25.27ppl, UKMFE Net 22.0ppl, UKMFE Total Net 20.0ppl)
Week 68 from the Aug’17 peak and week 53 from the Dec’17 low


FCStoneMilkprices.com UK Milk Futures Equivalent (UKMFE) recorded its 3rd consecutive weekly gain for the forward curve and the consecutive week of a full green monthly board, will all 3 elements making up the milk price (butter, SMP and currency) moving in a positive direction.

After the increase of €67/t the previous week (£130/t increase over the previous 2wks), the average price of butter on the forward curve increased by a further €35/t last week to €4,532/t. The average price for SMP—bolstered by the EU Commission’s decision last week to accept bids from its December tender, to sell a further 60,537t out of Intervention—increased by €33/t to €1,898/t following the combined increase of €90/t over the previous 2wks.

Sterling again moved weaker against the euro with the forward curve EURGBP increasing by 0.32p to 90.70p compared with 90.38p the previous week.

The average exchange rate pushed the butter price in terms of sterling up £46/t to £4,111/t which equates to a cream equivalent of circa £1.90kg compared with £1.88kg the previous month. The curve average SMP price increased by £36/t to £1,722/t.

The above prices in sterling increases our FCStoneMilkprices.comUKMFE Gross by a further 0.58ppl to 31.69ppl and by a total value of 2.64ppl since the middle of Nov’18. This in turn delivered UKMFE Net to the producer up 0.55ppl to 28.11ppl. Total Net UKMFE (reflecting margin/costs associated with trades and with limited basis risk on the presumption that producer prices deals are index linked to quotations) was also up 0.55ppl to 27.61ppl.

To download our latest UKMFE spreadsheet incorporating the graph of the forward curve please click Here

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