Milch News, 12/22/2022

The official livestock census figures as of November 3 show that the number of dairy cows kept in Germany continues to decline. As of the reporting date, around 3.8 million dairy cows were kept, which was 7,600 animals or 0.2% fewer. The number of farms with dairy cattle payments fell by 1.5 percent or 1.5 percent, compared to the previous year the minus is 3.5% or 1,900 farms. Milk deliveries also increased in the first week of December. According to preliminary calculations, around 0.8 percent more milk was delivered compared to the previous week. This reduced the gap to the previous year as a whole to 0.3 percent. Accordingly, the commodity markets fell significantly. With low demand, the prices for cream fell very significantly, also due to the higher supply. Sports market milk also lost another 7.3 cents and is quoted at 39.7 cents/kg as a national average. There are hardly any changes worth mentioning in the case of block butter .Demand continues to be limited to short-term needs, while buyers are hesitant about longer-term deals in anticipation of further falling prices. The trading range in Kempten was updated unchanged compared to the previous week. The price trends for block butter on the EEX are still falling. In the meantime, the lowest prices since the beginning of the year have been recorded. Trading activity has slowed recently. The form butter calls are somewhat weaker than in the previous week. The majority of dealers' expectations are disappointed. The food retail trade is responding to the recent drop in consumer demand with lower prices. The 250 gram pack of branded butter currently costs EUR 1.99, which is 30 cents less than at the beginning of the month. Yesterday, the formed butter listings on the butter and cheese exchange in Kempten were unchanged compared to the previous week. Calls for cheese have also become quieter. The calls by the food retail trade are lower shortly before Christmas.Bulk consumers and industrial customers call off their goods in accordance with the contract, and despite the recent fall in prices, there are only a few new contracts. On the other hand, slight impetus came from the export business. The lower prices ensure an increase in demand in this sales channel, although the export business is still below expectations in terms of volume. The listings in Hanover for block and bread products also gave way in yesterday's listing. Compared to November 2022, cheese prices have fallen by an average of 0.47 euros per kilogram. There is still a lack of impetus for skimmed milk powder . Although the price quotations stabilized shortly before Christmas, the interest in buying is still manageable. The start of the Christmas holidays mean that trading activities are also declining. Manufacturers are currently concentrating on processing existing contracts. International prices for skimmed milk powder fell 4.8 percent in the Global Dairy Trade Tender in New Zealand. The European goods are thus becoming internationally competitive again, despite the euro exchange rate picking up again, and this is already reflected in the first business deals.Prices on the EEX have recently been slightly weaker, and observers are slowly but surely assuming that powder prices will bottom out. On the other hand, the market for whey powder in food quality has picked up. The recently lowered price level has aroused the interest of buyers. In the meantime, inquiries from the export business are arriving at the plants again, which also lead to business deals. Accordingly, the trading range determined in yesterday's listing at the lower end was able to increase by 20 euros. Yesterday, the southern German butter and cheese exchange listed a trading range of 970 to 1,050 euros per ton for whey powder.