Milch News, 01/11/2024

More milk was delivered in the last week of December 2023 than in the previous week. Overall, dairies had 1.3 percent more raw milk available for processing throughout 2023. Trading on the raw materials markets has increased again and market trends have normalized. This week both industrial cream and skimmed milk powder rose slightly. Spot market milk is also traded somewhat more firmly and is currently quoted as a federal average of 35.8 cents/kg. Demand for packaged butter remains at a high level. Although overall demand has decreased somewhat compared to the very high orders in November and December, current goods shipments are well above the level of the previous year. At yesterday's listing, Formbutter was able to gain at the upper end of the trading range due to good demand. On the other hand, the block butter market remained quiet in the second week of January. There is slowly some movement in the market, because the industry in particular is making increasing demands again, but there are not yet particularly extensive deals. When business deals are concluded, firmer prices can easily be achieved. The price in Kempten increased by 3 cents/kg at the lower end.Prices on the EEX have recently become somewhat firmer on a weekly basis. Overall, the trading volume on the EEX remains manageable so far in January. When it comes to sliced cheese, the holidays could be used to build up inventory. In particular, the higher milk supply was increasingly channeled into cheese production. Overall, however, stocks are still described as very low and young. Goods output is at a good but seasonal level. Impulses certainly come from advertising campaigns in food retailers. Large consumers and industrial customers, on the other hand, primarily purchase goods within the agreed framework and sometimes show no interest in additional quantities. The first dairies are again recording increasing demand from the Far East. Japan in particular seems to have greater interest, while business in China is proceeding calmly. The prices for block goods in Hanover remained unchanged yesterday. Bread goods were increased by 5 cents at the lower end and are now trading at a range of 4.15 to 4.35 euros/kg. For the second time in a row, the prices for food-grade skimmed milk powder were reduced.Inquiries and transactions remain manageable; many buyers are still not active on the market. Export-oriented dairies certainly have hopes of increasing business with North African countries. Demand from the Far East is low. On the one hand, prices in Europe are significantly higher than in the USA and New Zealand, and on the other hand, the conflict in the Suez Canal means that transport costs have increased significantly. On the EEX, skimmed milk powder went slightly south. The market for whey powder, however, has continued to revive. More goods are being traded again, and industrial customers from the European internal market in particular are showing increased demand. The price was increased by an average of 30 euros to 940 - 1,030 euros/t. Whole milk powder continues to be traded in manageable quantities. European industrial customers are showing interest here, but this only results in new business deals to a limited extent. The price in Kempten fell slightly.