Milch News, 11/16/2022

The development of the milk volume is stagnating and, according to the provisional calculations, shows no change compared to the previous week. Compared to the 44th calendar week of 2021, however, around 2.2 percent more raw milk was served than in this year's 44th calendar week of 2021. In the year to date, however, around 0.7 percent of the milk volume is still missing compared to the previous year. Stabilizing tendencies are becoming apparent on the raw materials markets. Cream could be traded more firmly in the middle of the month, since demand is also somewhat more lively again. Skimmed milk concentrate is moving sideways, but here and there higher conditions are already being reported. Liquid skimmed milk is traded more extensively, with demand coming in particular from southern Europe. Spot market milk, on the other hand, repeatedly fell. The ife institute found a national average of 54.8 cents/kg, which is another 0.4 cents less than last week. At the butter market , the mood is slowly changing. The listings for bock butter were able to increase, although trading continues to be rather cautious on the part of the buyers. Deliveries for the first quarter of 2023 are taking place more and more.Butter prices on the EEX have recently been able to hold their own and have increased again for the vast majority of delivery months, although the trading volume in Leipzig was somewhat lower again. In the Global Dairy Trade Tender, butter prices were slightly weaker. The converted average price is 4,641 euros/t and was thus 0.8% lower than at the last auction in early November. Packaged butter , on the other hand, continues to be ordered in large quantities. The food retail trade in particular calls up a large number of goods from the manufacturers. The upcoming Advent and Christmas season also ensures a generally improved demand. The listing on the southern German butter and cheese exchange was continued unchanged at the previous level. When it comes to cheese , consumers tend to continue to ask for small packaging sizes and retailers' own brands. The orders from the cheese dairies are still high, but the listings in Hanover for block and bread products fell slightly. Large-scale consumers continue to order additional requirements rather cautiously.When it comes to exports to third countries and EU countries, there are quantitative declines, the business is described as tending to be difficult, and price discussions are the order of the day here. The mature stocks are at a normal level, but goods are still being delivered very young. The weaker tendencies continued to prevail on the market for skimmed milk powder . An average price for skimmed milk powder of 3,000 euros was determined for Germany, in the Netherlands and France the prices are already below the 3,000 euro mark. In mid-November, however, demand from manufacturers was somewhat more lively again. Short-term deliveries are again increasingly in demand and negotiated. However, there is already interest in buying contracts in the new year. As recently, the manufacturers are still willing to sell, as the availability of goods is more than sufficient for the current demand. For this reason, the trading range for the listing in Kempten was again corrected downwards. On the other hand, the skimmed milk powder contracts are stable on the EEX and were even able to develop more firmly at a low level for the following months. Internationally, skimmed milk powder picked up again.Tuesday's Global Dairy Trade Tender was up 3.1% north, bringing international prices back somewhat closer to European ones. The listings for whole milk powder went south. The butter and cheese exchange in Kempten reduced the average listing by a significant EUR 235/t. European goods still lack international appeal. The increased whole milk powder prices at the Global Dairy Trade Tender will not change that. Here, whole milk powder increased by 3.1%, but on average it is still around 1,200 euros per ton below the price that was determined in Kempten. The attitude of buyers to whey powder continues to be wait-and-see. A small number of deals are concluded with European industrial customers.