Milch News, 02/16/2023

The seasonal trend of higher milk deliveries continues. However, the increase in milk volume has slowed down somewhat recently. In the 5th calendar week, the dairies had around 0.4 percent more milk available for processing than in the previous week. According to provisional calculations, the milk volume is currently 3.& percent above the level of the same period last year. Prices have stabilized on the raw materials markets. Due to good demand for formed butter, the cream prices were able to develop more firmly and demand was brisk. Skimmed milk concentrate is being ordered at an unchanged stable level and prices have also increased due to positive trends on the futures exchange. On the spot market , raw milk traded 3.2 cents/kg higher than a week ago at a price of 35.8 cents/kg. This also indicates a sustainable bottom formation. The demand for block butter has improved significantly. Because of the very good consumer demand for block butter, buyers for block butter are worried about the shortage of goods and are also showing more interest in longer-term contracts.In addition, more and more inquiries are being received from German and European manufacturers from the export markets. As a result, butter prices in Kempten also went north. Yesterday there were lower prices on the EEX, but on a weekly basis the butter futures were able to increase, especially in the contracts from February to October 2023. Trading volumes have also increased significantly recently. Packaged butter is in much better demand again after the price reductions. The food retail trade continues to order a large number of goods from the factories. The listings were withdrawn again as a result of the recently lower dairy prices. The listings for cheese at the listing commission in Hanover gave way yesterday. However, there is good to better demand on all channels. This causes some market participants to assume that a bottom may already have been found. The food retail trade extensively calls up goods from the manufacturers. Consumers are in demand both for cheese in the entry-level range and for branded goods, which are currently being heavily advertised by food retailers. Increasing inquiries are coming in from the general assembly area.Buyers are also showing increased interest in deliveries in the third and fourth quarters, even though the number of deals is still very small. From the export destinations, especially China and the Asian region as a whole, there is increased demand again, especially for the second quarter of 2023. The higher supply of milk meant that the stocks in the maturing warehouses increased slightly despite the better calls. However, it is expected that these will quickly dissipate again in the next few weeks. The powder markets are stabilizing. The demand for skimmed milk powder has continued to stabilize and more and more new contracts are being concluded. As with butter, a bottom seems to have been found on which prices can continue to develop. The main focus of buyers is still on short-term supply contracts, but later deliveries are also increasingly being negotiated and concluded again. China is again calling up more goods on the world market, but German and European manufacturers have not yet been able to benefit from this in the long term. Prices on the EEX have also recently developed more firmly and the trading volume has increased noticeably again.The European Skimmed Milk Powder Index of EEX was able to increase significantly again during yesterday's index determination. Firmer and more stable trends are also evident in feed grade skimmed milk powder. While new business is still not particularly large, buyers have shed their wait-and-see attitude. The listings for both food grades and feedstuffs on the southern German butter and cheese exchange increased accordingly. While the whole milk powder market remains calm, whey powder is increasingly in demand. Although the availability of goods is still extremely good, production is expected to be somewhat lower due to limited drying capacities. The price quotation in Kempten therefore developed more firmly. Buyers are increasingly requesting later delivery dates.