Milch News, 10/19/2023

The decline in milk supply continues. In the 40th calendar week, around 0.4 percent less raw milk was delivered than in the previous week. However, the volume is still significantly larger than last year. Compared to the 40th week of 2022, around 0.6 percent more milk was served; in the first 40 calendar weeks the lead is 2.0 percent. Activity on the concentrate markets has slowed somewhat and the volumes traded are lower, but prices remain stable. Spot market milk fell by 0.9 cents to 42.1 cents/kg in the federal average. Last week's price increases for molded butter have not resulted in reduced orders from dairies. Outgoing goods continue to be extensive and, according to data from national sales statistics, are significantly above the volume level of the comparable week of the previous year. Consumer prices remain unchanged at an increased level of 1.45 euros/250 grams. The block butter market, however, has lost some of its recent momentum. Business activities are described as quieter. The higher cream prices also reduce production; in many cases it seems more lucrative to sell industrial cream directly than to process it into butter.Business deals continue to be concluded, especially in the new year. Sufficient inventory is available for short-term needs. The quotations in Kempten were raised slightly and the butter contracts on the EEX were also somewhat firmer recently. Internationally, butter is also rated as firmer. At the Global Dairy Trade Tender in New Zealand, the butter price rose by 2.8 percent to 4,940 USD/t (4,688 euros/t). The prices for semi-hard cheese are stable to firmer. The listing commission in Hanover also increased the prices for Gouda and Edam block goods yesterday; for bread goods, the price remained unchanged at the level that was increased last week. Demand remains exceptionally good. The food retail sector continues to request large quantities from dairies and cheese dairies; a further increase in demand is expected in the coming week due to supply campaigns and changes in product range in parts of the retail sector. However, inventory levels are becoming scarcer. Dairies produce on sight and are often unable to meet requests due to the declining milk volume. The ripening stocks are extremely young and are considered to be low.Food-grade skimmed milk powder continued to rise in price. At the lower end of the trading range at yesterday's listing in Kempten, a price of over 2,500 euros was again found, and at the upper end one of over 2,600 euros. Declining inventories in Germany and Europe as a whole are supporting the price structure. Lower inventory levels are also being reported from the USA and the situation in the Global Dairy Trade Tender has also picked up. Even if European goods are competitive on the world market, trade with third countries is currently still subdued. The business of local manufacturers focuses primarily on the European internal market. The supply of whole milk powder is currently described as scarce. Production is also limited by the high prices for industrial cream, as dairies primarily direct the raw materials into other uses. The listing in Kempten rose, and whole milk powder also increased in the Global Dairy Trade Tender. However, domestic goods are still clearly not competitive on the world market. The market for whey powder is stable. Manufacturers are now increasingly receiving inquiries from Asia. The price quotations rose again yesterday.Both food grades and animal feed products were able to increase in price.