Milch News, 03/30/2023

After weeks of stagnation in the delivery of milk, the quantity delivered has recently increased again. In the 11th calendar week, around 0.2 percent more milk was delivered than in the previous week. In the year as a whole, 3.1 percent more raw milk was delivered than in the same period last year. The supply of raw materials for cream and skimmed milk concentrate is still sufficient. However, cream has recently been trading stably with slightly firmer tendencies. In the short term, the Easter business in particular will support demand for butter and cream, but overall volume expectations are below those of the previous year. Demand for liquid skimmed milk was weak, but skimmed milk concentrate was able to increase slightly despite falling powder prices. Spot market milk was listed slightly weaker at 29.4 cents/kg. The approaching Easter festival means there is lively demand for molded butter . Although traders had definitely expected more sales volume, the vast majority of market participants were satisfied with the type and scope of the business. Yesterday, the listings for formed butter on the southern German butter and cheese exchange were unchanged from the previous weeks.The block butter market is currently characterized primarily by ongoing discussions. Manufacturers and buyers are increasingly negotiating for the second half of the year, but buyers and sellers are still largely unable to find each other due to different price expectations. The prospects of a further increase in milk volumes mean that buyers in particular are cautious. Fewer contracts were traded on the EEX on a weekly basis, but prices fell, especially at the long end. The spot market listing on the butter and cheese exchange in Kempten also fell, lowering the upper end of the trading range by EUR 0.05 per kilogram. There are also weaker tendencies on the European market, with block butter prices only increasing significantly in France. The Easter business is also making itself felt in the cheese market , but here, too, the quantities sold are below the expectations of market participants. The calls from the food retail trade are continuing to the agreed extent, but there is a lack of impetus from the area of bulk consumers and industrial customers. On the other hand, demand from the export business continued to rise.Southern European holiday regions in particular are currently increasingly filling their warehouses. In the third country market there are increasing inquiries and goods are constantly flowing out. Despite the lower domestic demand in terms of quantity, this means that inventories at local manufacturers are still young and below average. Block goods were slightly increased in price yesterday by the listing commission in Hanover, bread goods are listed unchanged compared to the previous week. Skimmed milk powder does not currently show a very clear direction. Many market participants have meanwhile reportedly covered their needs for the second quarter, which is why new inquiries for short-term deliveries are only occasionally received by the drying plants. Discussions for the third and fourth quarters have so far been held without any notable results. On the EEX, the prices for the early dates fell slightly on a weekly basis. The spot market quotation was lowered yesterday. Feed grades are traded at lower prices on a smaller scale. Whole milk powder shows stability and hardly any changes.In contrast to many other milk products, European whole milk powder lacks international competitiveness, which is why there is hardly any demand from dairies outside the European domestic market. The prices for whey powder continue to develop weaker. Demand from the food sector is subdued and feedstuffs are only traded very sporadically. Against the background of the significantly lower basic payment prices, many dairy farmers seem to be waiting to stock up on calves, which is why demand for feed products is expected to be weak in the coming weeks.