All SMP bids rejected
The European Commission has rejected all bids for stocks of skim milk powder (SMP) in last week's round of intervention sales.
The latest round of tenders for SMP ranged from €30 to €221.50/100kg for the 79,553t on offer, but all bids were turned down because the prices were not considered to be satisfactory in light of the current market.
The move has been widely welcomed, with industry experts commending the Commission for avoiding an upset in the dairy market.
Demand for butter stocks remained high, with 11,935t of butter sold out of intervention at prices varying from €355.10 to €381.50/100kg.
This is well above the current EU market average of €345/100kg.
The butter was sold from cold stores in the Czech Republic, Estonia, Ireland, Lithuania and the United Kingdom.
Just 1,755t of butter remain unsold after this latest meeting of the management committee.
The expected clearout of butter stocks effectively means that the institutional cooling mechanism of buffer dairy stocks is now gone.