Milch News, 02/09/2023

The amount of milk delivered continues to increase. More raw milk was served in the last week of January compared to both the previous year and the previous week. The raw material markets have evidently recovered, and the prices for cream in particular have firmed up. Already in preparation for the Easter business, many market participants are anticipating an increase in consumer demand for butter. Skimmed milk concentrate is unchanged. Spot market milk is also increasing and is quoted 1.3 cents higher at 32.6 cents/kg. The block butter market has recently been busier. The number of closed contracts reportedly increased significantly. Some buyers also showed interest in long-term supply contracts and were willing to sign them. In particular, the preparations for the Easter business seem to be reviving the market. The quotation in Kempten remained unchanged at the lower end of the trading range, but was able to increase by 0.15 euros per kilogram to 4.15 - 4.35 euros/kg at the upper end. This development has also been reflected on the EEX for a few days.In particular, the earlier dates are firmer again and the average prices of all delivery contracts were able to increase by more than 160 euros per tonne, which ultimately also means that the market milk values for all dates from March 2023 are again above the 0.40 euros/kg mark. Formed butter was quoted 2.20 euros/kg lower when it was listed on the southern German butter and cheese exchange. This reflects in particular the new contracts between manufacturers and food retailers that have been in effect since the beginning of February. According to statements by retailers, the lower consumer prices are leading to a significant revival in consumer demand for butter. The calls from the food retail trade have therefore recently increased again at the plants. Calls from food retailers for semi- hard cheese are also increasing. The market trend has also picked up here. In particular, stocks in the entry-level price segment are in high demand, but bulk consumers are also bringing new impetus to the cheese market. The recent fall in prices has strengthened Germany's competitiveness and so there are now more inquiries and deals in third-country business.The stocks in the maturing warehouses recently decreased again somewhat after the growth around the turn of the year. The listing commission in Hanover left its price determination yesterday at the current level. Some market participants are already interpreting this as a signal that the cheese market is bottoming out. At the turn of the month, the situation on the market for skimmed milk powder also became more stable. Demand is livelier, and the manufacturer dairies are receiving more inquiries. However, buyers continue to focus on deliveries with a short-term time horizon, although there are also individual negotiations for later dates. After the end of the New Year celebrations from China, exporters are hoping for better demand, which is already happening in some cases. However, other destinations in the Far East that are important for Europe are currently still cautious in their inquiries. The listing on the butter and cheese exchange in Kempten was stable yesterday. The prices for skimmed milk powder in the Global Dairy Trade Tender also remained unchanged and the prices for animal feed grades even increased slightly in Germany.On the EEX in the past week, there were more and more green signs on more and more trading days, the listings have increased slightly compared to the last week. In the Netherlands, the average prices for skimmed milk powder increased in a weekly comparison. Demand for whey powder was also somewhat more lively. Due to the high level of cheese production, sufficient whey powder was available. However, higher prices could again be achieved for fresh goods, while stock goods are sold with price concessions. Whole milk powder is still only to a small extent in the focus of buyers. The availability of goods is good, which is why prices continue to fall slightly. Whole milk powder rose again this week in the Global Dairy Trade Tender. The increase is 3.8%. On the EEX, stock market milk values rose again. In particular, the better butter prices are contributing to this. But powder prices are also becoming firmer and higher from day to day.