Milch News, 08/03/2023

In the past calendar week 29, the typical seasonal trend in the delivery quantities continued and so 0.4% less milk was delivered to the dairies. Compared to the previous year, the difference is still 2.5%. All in all, the supply of raw materials is above the level of the previous year. There has been little change in the overall fundamental situation on the sub-markets. Market participants are only reporting a slight increase in demand for cream. The ife Institute has raised the price for raw milk to 37.3 cents per kilogram. This corresponds to an increase of one cent compared to the previous week. The summer slump continues to leave its mark on the powder markets . Trade in food-grade skimmed milk powder has not picked up and there is less demand for goods due to the holiday season. The manufacturers have largely concentrated on servicing the contracts and have only occasionally negotiated new contracts for the last quarter. Due to different price expectations, successful deals were only rarely concluded. In the GTD in New Zealand, the skimmed milk powder index fell by 1.4%.The course of business is similar for skimmed milk powder in animal feed quality. In addition, the stronger euro means that domestic goods are less competitive. The MMP contract was traded on the EEX last week at EUR 2,560 per tonne and was thus above the spot market. Trade in semi-hard cheese is at a seasonal level. Sales are steady, but without any major impetus. With a view to the coming week and the slow end of the holiday season, many market participants are expecting demand in the food retail sector to pick up. The call-offs from industry were quieter. The changeable weather of the past few days has had an immediate impact on outdoor catering, so that sales there have fallen significantly. But the import business is also suffering from unfavorable weather conditions. Especially in the south of Europe it is very hot, so that fewer goods are ordered there as well. The stocks of cheese have hardly changed compared to the previous week. The age level is described as quite young. The price structure has developed stably and is quoted at the level of the previous week.The calls for formed butter were slightly better compared to the previous week. The food retail trade has called up more goods, and overall the current commercial transactions are in line with the seasonal trend. In some federal states, the summer holidays will end in the coming week, so that some impulses are expected here again. When it comes to block butter, the market is moving in calm waters. Especially for short-term deliveries, buyers had to accept slightly firmer prices, even though hardly anything has changed in the range of goods. At the 337th GlobalDairyTrade, prices had to cope with a further decline. Overall, prices have lost an average of 4.3% and are now around EUR 2,826 per tonne. With the exception of buttermilk powder, all products had to give way. Skimmed milk and whole milk powder in particular were significantly weaker than in the previous weeks. But Cheddar's cheese listing was also headed south.