02.
05.14
Germany: milk prices in the first quarter of about 40 CT / kg

Milch Cockpit, 02.05.2014

Bullish
  • High worldwide demand for milk and dairy products.
Bearish
  • Milk production in the northern hemisphere at its seasonal peak.
  • Increasing milk production in almost all major exporters.
  • EU goods to the world market only partly competitive.
  • Market risk by worsening conflict in Ukraine.

(AMI) Milk producer prices in Germany fell below the seasonal course in easy March 2014. According to estimates of the AMI, the dairies in the nationwide average paid approximately 40.0 CT / kg for conventionally produced milk of cow with 4.0% fat and 3,4% protein. Less than 0.2 CT were less than in February of this year. Thus, milk producer prices were still at an exceptionally high level. The 40 cent has been achieved again just after it has been exceeded before 5 months in a row. A first - ever milk prices have remained contained at this level for almost half a year. Compared with March of last year, ahead of the 6.3 CT has diminished slightly. At the beginning of the year, he had still at around 6.7 CT location. This is due to the fact that the milk producer prices had risen slightly in 2013 in the prevailing, amazingly stable market position contrary to the seasonal trend.

Had himself in February 2014 the level of payments, carried by the market situation continued strength at the beginning of the year, still largely kept stable, milk producers in March in the wake of the weaker tendencies in the markets for milk and Michprodukte had to secure some significant declines. 43% have reduced their payment performance from dairies in March, while the reductions ranged from 0.5 CT and CT 3.0 at the top. Good at the half of the price remained stable. Only 4% have raised the cash.

Germany: milk prices in the first quarter of about 40 CT / kg
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ZMP Live Expert Opinion

With more than 40 CT / kg on average the dairies have paid out 2014 a milk money at record levels for this time of year in the first quarter. For the second quarter, the price level will remain relatively high, although some reductions in consequence of weaknesses in product markets will be unable to prevent. Should the markets following a sustained volume of milk does not recover, clearer price corrections for producers are expected in the second half of the year.

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