Milk News, 08/06/2020

Compared to the previous week, milk volumes continued to decrease by around 0.7% less. However, the previous year's level is exceeded by 1.3%. Above all, the coming very warm temperatures will continue to have a negative effect on the delivery quantities. Demand on the concentrate markets remains calm. The holiday season as well as the heat wave dampen trading activities. On the spot market , the price for raw milk fell again to 31.00 cents / kg. The skimmed milk powder market is also very calm. Deals are occasionally concluded, but here too the vacation time ensures that there is hardly any demand for goods. The prices then fell slightly. A similar picture emerged with the GlobalDairy Trade-Tender, where the powder lost 4.6%. Whole milk powder lost 7.5%. On EEX, prices fell compared to our report on Monday, especially for the first quarter of 2021, and prices for the second half of 2020 are also weaker and cannot maintain the 2,000 euro / t mark.The demand for molded butter has stabilized slightly and is at a seasonal level. Nevertheless, the holiday season is slowly becoming noticeable, so that consumer demand is falling slightly. With the warm temperatures in the next two weeks, restrained demand is expected. In terms of price, the butter is at a good level. On average, consumers pay between EUR 1.40 and EUR 1.45 for a 250-gram packet. There are hardly any changes in the block butter market . The more than sufficient supply exceeds the demand. However, pressure to sell does not seem to arise at times. When deals were made, this mainly happened in the European environment. However, exports have not yet reached the level traders hoped for. In addition, the global price reductions for butter (GDT - 2.8%) mean that domestic goods are becoming less competitive. In the cheese market , supply and demand are still in balance. Demand is at a seasonal level and market participants are satisfied.Particularly in the GV area, which is benefiting from the increased number of domestic tourists, positive impulses are expected in the coming period. However, exports to southern Europe have so far been at a below-average level. Doing business with third countries is also currently difficult. The increased exchange rate of the euro, as well as cheap offers from abroad, currently allow little trade.