Milch News, 05/25/2023

The supply of raw milk temporarily peaked in mid-May. In the 19th calendar week, 0.3 percent less milk was delivered than in the previous week. The lead in the year to date compared to the same period in the previous year has thus further decreased to 2.8 percent more volume. Firmer price tendencies can be seen on the raw materials markets themselves. On the demand side, there were definitely different impulses here. On the one hand from the strawberry and asparagus season, but also from increased demand from the ice cream parlors. In addition, there were also inquiries for cream and skimmed milk concentrate from other European countries at the plants in Germany. Spot market milk rose by 2.4 cents on a weekly comparison to 29.5 cents/kg on average across the country. Firmer tendencies can also be seen in the Netherlands, where spot market milk is already being traded for over 30 cents/kg. Packaged butter was able to maintain the recently slightly reduced price level at the butter and cheese exchange in Kempten yesterday. Demand is at the level of the previous week, and hoped-for volume increases are currently not evident. The consumer price is still 1.45 euros for the 250 gram pack.Occasionally there are special offers in retail, so that sometimes cheaper prices are called up. The market for block butter, on the other hand, is gaining momentum. Although inquiries from export destinations outside Europe have decreased somewhat, many sellers and buyers were able to agree on prices for the third quarter of 2023, so that more deals were concluded. The prices were able to rise slightly, the butter and cheese exchange increased their listings. Prices on the EEX were also firmer on a weekly basis, with buyers increasingly returning to the trading floor for later delivery dates with bid prices. In terms of price , cheese is stable this week. Demand from the food retail sales channel remains dynamic. Consumer price cuts in early May have improved demand at this level. The start of the beer garden season also increases demand from the catering trade and bulk consumers. Exports to the tourist regions of Southern Europe also increased again.Although production is still high due to the volume of milk, the high outflow of goods into the individual sales channels means that inventories are falling overall and the available lots are comparatively young. Further stabilizing tendencies can be seen in food-grade skimmed milk powder . Although the number of new business transactions has fallen slightly, the manufacturers are still receiving new inquiries. The focus is on the European domestic market. Occasionally, however, there are also inquiries from third-country markets. Listings on the EEX have recently increased slightly and the trading range at the lower end of the butter and cheese exchange in Kempten was also increased by EUR 30. Demand for skimmed milk powder in feed quality is still rather subdued, but a slight increase in interest is reported here too. The prices are also slightly improved compared to the previous week. The prices for whole milk powder have remained unchanged. Business activities have declined slightly compared to the two previous weeks, but talks are still being held with European industrial customers.Internationally, whole milk powder from Germany is still hardly competitive. The development of whey powder is also constant. Because of the extensive cheese production, there is enough liquid whey available that can be dried. The price quotations were able to increase slightly, but it is reported that there are sometimes considerable price differences, especially between stock goods and fresh production quantities.