Milch News, 02/29/2024

The usual seasonal increase in milk volumes continued. In the 7th week, around 1.1% more milk was delivered than in the previous week. The mild temperatures of the last few weeks have accelerated the growth in milk volumes. Cumulatively, however, around 1.3 percent less raw milk was recorded in the first seven calendar weeks of the new year compared to the previous year. A multi-part picture emerged on the raw materials markets. Spot market milk fell by 0.7 cents to 36.3 cents/kg on the federal average. There was also more than enough skimmed milk and skimmed milk concentrate available and the price fell with manageable demand, while industrial cream was able to benefit from the increased demand for block butter. The price quotations for block butter have improved significantly. In line with the higher demands from dairies, demand has also calmed down somewhat. Discussions are now taking place primarily for longer-term supply contracts where manufacturers and customers do not always agree on price. On the EEX in Leipzig, the leading dates were traded somewhat weaker. Trading activity is significantly higher than in previous weeks. Demand for molded butter remains at a high level, although goods issued have recently decreased somewhat. The price in Kempten remained unchanged at 5.69-5.87 euros/kg. Consumers continue to pay 1.69 euros for 250 grams of butter in food retailers. This means that butter currently costs around 0.20 euros more than a year ago. The cheese market remains stable. The calls are at the high level of previous weeks and are occasionally supported by special offers in food retailers. Industrial customers occasionally requested additional quantities. For longer-term deals, market participants report firmer prices. As expected, inquiries from southern Europe are increasing. Inventories remain at a low level and are comparatively young. After the lively business of the previous week, the powder markets have calmed down again. When it comes to skimmed milk powder, buyers are currently primarily demanding agreed quantities, while new and additional business transactions are very limited. Degrees focus primarily on the European internal market. Despite better competitiveness, export activities are lower. Ramadan is about to begin in the Arab countries, and shipments to the Asian region are very expensive due to the location on the Red Sea. Powder prices on the EEX are stable over the week. The trading volume for skimmed milk powder in animal feed quality is low. The volumes have decreased compared to mid-February, the prices have fallen by around 10 euros to 2,330-2,360 euros/t. Whole milk powder is also characterized by only individual business activities. Above all, existing contracts are produced and fulfilled. Whey powder is abundant because of the high cheese production. Calls and new business are somewhat more subdued than in the previous week. Discussions about deals are continuing and include both buyers from the domestic market and from the export market. The price rose slightly at the upper end of the trading range, while it fell slightly at the lower end.