Milch News, 11/23/2023

Compared to the previous week, 0.2 percent less raw milk was delivered in the 45th calendar week. The milk supply has therefore not fallen as sharply as in previous weeks, which suggests that the seasonal low has probably been reached. The week of the previous year is also down by a good 2 percent. Overall, however, dairies have still had around 1.7 percent more raw milk available to them this year than in the previous year. Prices for cream have continued to rise, demand is brisk despite a low supply of goods. Skimmed milk and skimmed milk powder were usually sufficiently available, with regional differences, and prices tended sideways. On the spot market , milk is quoted at 45 cents/kg, which is 0.5 cents firmer than the previous week. The prices for molded butter remained unchanged yesterday. Manufacturers continue to report brisk sales. The upcoming Advent and Christmas season ensures high demand for goods and rapid trade. A further increase in views is expected in the coming weeks. The block butter market remains relatively calm.Nevertheless, the prices in Kempten were able to increase and the prices on the EEX also increased over the various trading months on a weekly basis. Demand on the actual market is mostly limited to deliveries in the first quarter of 2024. Buyers and sellers often disagree during price negotiations and deals are still rare. In the Global Dairy Trade Tender, butter is once again lagging behind, meaning that European goods remain barely competitive on the world market. The export business is described as quiet. The recent strengthening of the euro against the US dollar further limits competitiveness. The cheese market is in good shape. Demand continues to be at a high level and demand is described as good. The selection of cheese is just about sufficient. Demand is particularly high in the food retail sales channel. Promotions have fueled consumer demand here. Industry and large consumers purchase goods from cheese manufacturers to a satisfactory extent. With low inventories, there was also a continuous flow of goods for export. Additional requests often cannot be fulfilled due to low stocks.After Christmas, many market participants expect the market to calm down. Overall, the powder markets remain calm. Food-grade skimmed milk powder continues to be produced to a limited extent; the demand side is taking a wait-and-see approach. What is produced is primarily what has already been contractually agreed upon. The level of new contracts remains manageable due to different price expectations; when contracts are concluded, their prices are usually stable. The listing in Kempten was continued unchanged yesterday. The EEX recently showed slightly lower price trends across the various delivery times. Sales volumes last week were below those of the previous week. Skimmed milk powder in feed quality is currently in short supply, but since demand is manageable, prices remain stable. The price for whole milk powder was increased. Because of the scarce availability of raw materials, prices here tended to be higher, even though mostly only what was already contractually guaranteed was produced.There currently seems to be no need for short-term deliveries of whey powder . On the other hand, requests for deliveries increased significantly in the first quarter. Despite the high level of cheese production, production is manageable; whey is often diverted to other processing directions. Accordingly, the prices in Kempten were raised yesterday. At the lower end of the trading range, 50 euros more were registered per ton, but at the upper end 30 euros per tonne more were registered.