Milk News, 05/26/2022

The amount of milk continues to increase, as is typical for the season, but is still 1.8% lower year-to-date than in the previous year. Compared to the reference week in 2021, 1.5% less raw milk was recorded, according to preliminary calculations. Commodity markets continue to trend weaker. The higher volume of milk and subdued demand mean that both cream and skimmed milk concentrate are weaker. The national average spot market price for raw milk fell by 2.1 cents/kg to 48.0 cents/kg. Demand for molded butter is picking up . The asparagus season is providing the first impetus that is having a positive effect on the demand for butter, but the call-off quantities of the previous year are not reached. Consumer prices are up 20 cents month-on-month for the 250-gram pack. On average, consumers pay EUR 2.29 per packet. The market for block butter, on the other hand, remains calm. Agreements were made primarily for later delivery times, the prices tended to be slightly weaker, at the lower end the trading range was reduced by 13 cents per kilogram. At the butter and cheese exchange in Kempten, the price range was set at 7.05-7.15 euros/kg.Butter prices have recently stabilized again on the EEX. The November and December dates rose above the 7,000 euro/t mark again. Internationally, the German and European butter prices are still hardly competitive. The powder markets remain in correction mode. In the case of skimmed milk powder, the manufacturers are primarily concentrating on servicing existing contracts, and new business is only very sporadic. Inventory levels are still low, despite uncertainties about future deliveries, buyers are hesitant and waiting due to the trend towards falling prices. The dates on the EEX continued to be weaker into the second half of the year, but the settlement rates for the 1st and 2nd quarters of 2023 were able to increase over the course of the week. Feed quality skimmed milk powder is more readily available again, but buyers are hesitant and only plan their goods for a short time. With a low supply and manageable demand, whole milk powder is balanced, the quotation remains unchanged at 5,320 - 5,470 euros/t for the third time.Whey powder is largely unchanged, with the price range corrected down by 50 euros at the lower end. Here, too, buyers are reluctant in anticipation of falling prices. Demand for cheese continues to be very brisk. Even though consumer prices for semi-hard cheese have recently risen sharply in the food retail sector, this does not change consumer demand or purchasing behavior. Manufacturers are still unable to meet all inquiries, and southern holiday regions continue to stock up on goods from Germany. Exports show a good level of demand and deals are being made. However, the logistics are problematic. Due to the international problems, only a few containers are available. Prices for many types of cheese are still trending higher, although the momentum is slowing. The quotations in Hanover for bread products rose again slightly. In the Kempten, the cheese prices were largely able to maintain the price structure that had increased over the past week.