Milch News, 04/26/2024

Milk volumes in Germany are stabilizing at a higher level, with the spring-like weather in the first half of April boosting milk volumes. Compared to the same period of the previous year, dairies had around 0.4% more milk at their disposal, and milk volumes were up on the same week of the previous year. Weaker price trends can be seen on the raw materials markets. Skimmed milk concentrate in particular is very plentiful, demand for cream is good, but there is a lack of impetus from the ice cream and asparagus seasons. Spot market milk fell by 3 cents/kg to 29.5 cents/kg.

Demand for molded butter remains high. Food retailers in particular are placing large orders. The asparagus season has yet to provide any impetus, with the cool weather preventing a comprehensive start to the season. Both dairy selling prices and consumer prices are stable and unchanged. Block butter is quiet. There is still some interest in deliveries in June. Quotations on the South German Butter and Cheese Exchange fell this week. However, there are reports of improved demand and business activity on the export market. European goods are competitive and are therefore in greater demand. Most of the butter contracts on the EEX recently fell.

Outgoing goods and new contracts for cheese remain at a high level. Food retailers are continuing to call off large quantities of goods from manufacturers. Industry and bulk consumers, on the other hand, have not changed their orders. As temperatures are reported to be higher again, particularly in southern Germany, demand from this sector is expected to improve due to the start of the beer garden season. Inventories remain low and young. Price quotations remain stable.

On the EEX, prices for skimmed milk powder have recently fallen. On the South German Butter and Cheese Exchange, however, prices remained unchanged at an average of EUR 2,375 per tonne. The bottoming-out process is thus continuing. Overall, the market remains sluggish. There are only a few inquiries from both the domestic market and the export business. The hoped-for revival after the end of Ramadan has not materialized. Manufacturers have recently produced little skimmed milk powder, so there is currently no sales pressure. The sub-market for whole milk powder can also be described as extremely quiet. Although there are signs of slightly firmer prices, overall new business is noticeably limited. The price quotation was raised by 50 euros at the upper end of the trading range. Prices for whey powder remained unchanged. While there is little demand for feed grades, there is certainly interest in food-grade whey powder. Demand from buyers in Asia in particular is improving.