Milch News, 03/07/2024

At the end of February, the milk supply no longer grew as much as in the previous weeks. Compared to the previous week, the amount of milk in Germany decreased by 0.2 percent in the 8th calendar week. Spot market milk fell by 0.5 cents in a weekly comparison to 36.8 cents/kg in the federal average. Skimmed milk concentrate is currently in abundance due to the high level of skimming. At the same time, while demand is calm, there are weaker price trends on the protein side, while cream prices have recently increased. The demand for butter remains at a high level. In the run-up to the approaching Easter, food retailers are increasingly calling for goods, the factories are producing extensively, which also explains the good demand for industrial cream. Prices for molded butter rose yesterday by 13 cents per kilogram at the upper end of the trading range. Market participants expect a stable price development at least until summer. The trading volumes for block butter have recently been volatile. An increasing number of contracts are being concluded for April and May, and demand for short-term requirements has recently increased somewhat. Due to uncertainties about the further course of milk deliveries, dairies are currently reluctant to make longer-term offers. The price in Kempten fell slightly. There were also slightly weaker trends on the EEX and at the auction in New Zealand, international butter prices fell by 1 percent in the first tender of the month. Yesterday, the prices for cheese in Hanover and Kempten were unchanged from the previous week. Outgoing goods and demand for semi-hard cheese are still at an unusually high level for March. Food retailers in particular are currently increasingly ordering goods from dairies for the Easter business. The industry is calling on its contracts to the agreed extent, while sales to the catering industry are still lagging behind expectations. The current weather does not currently suggest an early start to the outdoor dining season. This group of buyers is correspondingly cautious. Stocks in the maturing warehouses are hardly replenished despite increased milk deliveries and higher production. The holiday regions in southern Europe are also increasingly ordering.

The volatility on the powder markets remains at the beginning of March. Food-grade skimmed milk powder is available in sufficient quantities and when prices are slightly lower, traders are increasingly asking for contracts again. The discussions that are being held mainly relate to short-term delivery dates; the first inquiries are being recorded for the second half of 2024, but buyers are still very cautious about making deals. The Butter and Cheese Exchange lowered the price yesterday. Due to Ramada, demand on the export market currently remains calm. The EEX showed slightly firmer price trends for skimmed milk powder on a weekly basis, but here too the prices remain volatile. There is little activity with skimmed milk powder as a feed product. Demand is extremely calm, prices have been reduced by an average of 30 euros to 2,300 - 2,330 euros/t. When it comes to whole milk powder , buyers are confronted with higher price demands from manufacturers, which are justified by the higher prices for industrial cream. These usually cannot be implemented and buyers have reduced their willingness to buy. The listing in Kempten is unchanged from the previous week. Food-grade whey powder is increasingly being traded. The availability of goods is extensive due to the high cheese production, but there is increasing demand from both at home and abroad, which also results in sales. However, due to the high inventory, the price fell by an average of 10 euros.