Milk News, 08/18/2022

At the beginning of August there was slightly more raw milk available than at the end of July. In the period from January to the beginning of August, however, around 1.4% of the raw material was still missing compared to the same period last year. Cream is plentiful and meets somewhat more muted demand with stable prices. Skimmed milk concentrate is traded stable to slightly weaker. The spot market was able to increase again by 0.2 cents to 57.2 cents/kg. Similar price tendencies were also reported from the Netherlands. With the soon-to-be end of the summer holidays in many German federal states, demand for the molded butter is somewhat more lively. Sales to food retailers have also returned to normal and are increasing. At EUR 2.29 for the 250-gram pack, consumer prices remain constant, as do the listings on the butter and cheese exchange in Kempten. In the case of block butter, the calm course of the market continued in August. However, the first market players are more active again and so the dairies are receiving more and more inquiries. According to reports, however, deals are currently being concluded for smaller quantities.The listing in Kempten was able to increase slightly and the butter index of the EEX was also able to increase again for the first time in weeks and the contracts in exchange trading were also friendlier compared to the previous week's level. In terms of exports, local butter still lacks competitiveness. In the Global Dairy Trade Tender in New Zealand, butter rose again slightly for the first time in weeks. Supply and demand for cheese are balanced. The manufacturers are posting fewer outgoing goods due to the holidays, but since there are fewer raw materials for cheese production due to the lower ingredients and the steamed milk delivery, the stocks in the maturing warehouses remain almost unchanged. Exports to the southern European holiday regions continue to run at an average level. However, German cheese products are increasingly facing competition from neighboring European countries. The listing in Hanover remained constant for both block and bread products compared to the previous week. In Kempten, prices were able to increase in part due to demand described as very good. Business activities in skimmed milk powder remain subdued.Contracts are primarily concluded for short-term deliveries and the uncertainty due to the discussions about energy and, above all, gas supplies is generally causing reluctance to buy. The listing in Kempten fell by EUR 50 at the lower end and the settlement rates on the EEX are also slightly weaker. Skimmed milk powder was almost unchanged in the Global Dairy Trade Tender. European goods continue to struggle in international trade. There is also little interest in buying skimmed milk powder in animal feed quality. Accordingly, the listing fell again here. Whey powder , on the other hand, continued its recent stable trend. Demand from manufacturers is picking up again. Deliveries for short term dates as well as deliveries in the third and fourth quarters are currently being negotiated and finalized. Feed grade whey powder is also being traded more steadily. For later deliveries, however, the price expectations between buyers and sellers are far apart. Increasingly cheap offers are also coming from other European countries.