Cream Price Trend and Forecast

Regional Price Overview

Get the latest insights on price movement and trend analysis of Cream in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Cream Price Trend for the Second Half of 2023

Europe

Cream prices in European countries varied throughout the said period. The price graph of the third quarter was relatively more flattened and downward moving than that of the final quarter. This was primarily attributed to the difference in the consumption patterns of both quarters. The peak winter months and the long holiday season in the latter part of the fourth quarter saw increased end-user cream demands, especially from the food and baking industries. Christmas holidays also prompted the general household cream demands, which further pushed up the cream prices in the later part of the fourth quarter. Overall, mixed market sentiments were witnessed in H2’23.

Cream Price Chart

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North America

In the North American market, the price trend for cream saw variations in its trajectory throughout the said period. The cream prices started on a positive note in the US market at the beginning of the third quarter and kept on the rising trajectory till the middle of the fourth quarter. However, as the Red Sea crisis started unfolding and the shipping industry struggled, the export orders started plummeting in the US market. This led to the creation of a supply glut in the market which was anticipating a higher number of orders because of the impending holiday season. Domestic consumption kept the market prices afloat, albeit an overall decline in the price trend was witnessed in the last two months of the year.

Analyst Insight

According to Procurement Resource, the cream prices are expected to continue to vary in the different regional markets as per the supply and demand situations. The global cream market, however, is likely to grow going forward.

Cream Price Trend for the First Half of 2023

Europe

Cream prices fluctuated throughout the first half of the year 2023 in the European market. Milk prices and the demand from dessert, ice cream, etc. industries guided the market sentiments.

In the UK market, cream prices first decreased in the middle of the first quarter and then rose by the end, and then again declined in the first half of the second quarter and then picked up again by the end of the second quarter. U Bulk Cream prices averaged around 1891 Euro/MT in June 2023. Similarly, prices averaged at about 3.53 Euro/Kg in June’23 in the Italian market after fluctuating within a very narrow range.

North America

North American cream market didn’t behave much differently than the European market as here also the prices oscillated within a short range throughout the discussed time period. Prices were fairly stable and rose a little till the middle of the second quarter and subsided marginally by the end of it. After inclining by approximately 6% by the month of May’23, the prices decreased and stood at about an average of 6679 USD/MT in June 2023. Overall, the market was stable, given the stability in supply–demand dynamics.

Analyst Insight

According to Procurement Resource, with the changing weather conditions, cattle fodder prices are expected to go up, raising milk prices; thus, an inclination in cream prices is also projected.

Cream Price Trend for the Second Half of 2022

Europe

European market maintained its high run for cream prices till October 2022, owing to the skyrocketing inflation rates and crippled supply. But a sharp price decline was noticed in October as the supply situation improved worldwide after the covid restrictions were lifted in China. Freight arrangements also got better aiding the upstream costs. In the last two months of H2 2022, the prices plateaued and remained on the declining curve.

North America

The downfall in the cream price trend in the US market started a little earlier than in Europe. After wavering on the lower side for 2-3 months, a sharp decline was noticed from October 2022, which continued till the year-end. Around September things started to get better for global trade as the supply tribulations had settled down. The clearing of port congestions was a big reason for the revival of trade activities. As the upstream costs went down and supplies became regular, the market demand failed to sustain the high cream prices.

Analyst Insight

According to the Procurement Resource, cream prices are expected to remain volatile in the coming quarter. As the global supply chain normalizes any fluctuations in the demand will directly impact the pricing fundamentals.

Cream Price Trend For the First Half of 2022

Europe

The unprecedented rise in feed and food prices owing to the Russian invasion of Ukraine has created massive volatility in the global market. The extreme price rise has trickled down to the entire dairy market. The surging costs are due to erratic supplies, rise in the price of animal feed and the lack of skilled labour. The European Milk Board has warned that the soaring milk prices are destroying the livelihood of dairy farmers.

Amid the high demand for butter, the available milk supply is being redirected for butter production, straining the supply chain for cream. In the UK, the cream prices went from 2155 Pound/MT in January to 2734 Pound/MT in June 2022. The prices of Italian centrifuged Cream (40%) averaged 3.47 Euro/kg during the said period.

North America

The US market is witnessing double-digit inflation due to the current geopolitical dynamics. Dairy prices increased by 11.8 % Y-O-Y basis while milk hiked by 15.9%. With the constricted milk supplies and booming demand from cheese and cream manufacturers, the price trend of Cream remained strong in the domestic market. The price of butterfat cream went from 3.54 USD/lb in January to 3.85 USD/lb in June 2022.

Procurement Resource provides latest prices of Cream. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.