Milch News, 11/24/2022

From November, German dairies will have more milk available again. Both the previous weeks and the comparison week of the previous year were exceeded, in some cases significantly. The overall shortfall compared to the previous year fell to 0.6%. The fat side in particular was firmer on the commodity markets. In anticipation of the forthcoming Advent season, cream was able to increase in terms of price and quantity. Skimmed milk concentrate is still not finding a clear trend and is developing differently from region to region. Especially because the powder stocks are currently more than sufficient, the concentrate is currently less in demand in terms of volume. The sports market price for raw milk, on the other hand, was able to increase and is quoted 1 cent higher than in the previous week at 55.8 cents/kg. The upcoming holiday season increases consumer demand for packaged butter . In particular, the own brands of the food retail trade are currently in high demand. The calls from the warehouses are extensive and brisk. According to reports, branded goods can currently only be marketed well as promotional goods. In the case of block butter, there are still weaker tendencies in terms of price.The listings on the butter and cheese exchange in Kempten were reduced by 23 cents/kg both at the top and at the bottom. Nevertheless, block butter is showing a slight upturn in the market trend. In particular for the first quarter of the new year, more deals are being made again. Nevertheless, the buyers are currently waiting in the expectation that prices will continue to fall, with the deals above their short-term requirements. This development was also recently evident on the EEX in Leipzig. Most butter prices fell there. The trading volume on the commodity futures exchange has recently been weaker again. Sliced cheese continues to fall in price. Once again, the trading margin was reduced when the listing commission in Hanover set prices for both block and bread products. The calls from the maturing warehouses are still extensive, which is why the stocks are still considered to be very young and now also below average again. Exports are running smoothly, bulk consumers and industrial customers order cheese within the usual seasonal framework. The downward trend in skimmed milk powder continues this week.The average prices at the butter and cheese exchange in Kempten fell below the 3,000 euro mark this week. On the EEX, prices are also weaker on a weekly basis. However, the futures curve definitely indicates an end to the price decline in the further course of the year. Manufacturers are increasingly receiving inquiries on the spot markets and at the same time they are offering their goods extensively, but the deals are still limited. Bid and ask prices are far apart in the negotiations. Goods are mainly ordered and negotiated for short-term needs. The market for skimmed milk powder in animal feed quality is also quiet. Here, too, the quotations have fallen. Whole milk powder is currently produced less. Manufacturers have adjusted their volumes to match the calm demand. Transactions are occasionally concluded with stable to slightly weaker prices. Here, however, cheaper offers from other EU countries are also pressing on the markets. Whey powder is currently being produced more extensively, since cheese production is also currently higher and therefore enough whey is available.Feed qualities in particular are traded at stable prices and there is definitely better demand from buyers. In the case of whey powder in food quality, the trading range had to give way during yesterday's listing on the butter and cheese exchange. The powder lost an average of 35 euros in the listing, which was recorded at 1,100 euros to 1,180 euros.