Milch News, 12/Jun/2025

The milk market was largely stable in the first half of June, accompanied by brisk demand and rising prices on the commodity markets. The seasonal peak in milk deliveries has now been passed. The volumes delivered at the end of May were almost at the previous week's level. According to the ZMB, nationwide volumes fell by 0.1% in the 22nd calendar week. Compared to the previous year, there is still a shortfall of 1.6%. Cumulatively over the first five months of the year, this results in a decline of 1.8% compared to 2024. At the beginning of June, a firm market impulse caused prices to rise, particularly for cream and skimmed milk concentrate. Spot milk prices also rose noticeably. According to ife Kiel, the national average in the 23rd calendar week was 48.3 cents/kg - 3.7 cents more than in the previous week and the highest increase since January.

The butter market showed two different facets at the beginning of June: While demand for molded butter increased significantly due to the public holidays and the asparagus season, the block butter market presented a mixed picture. In the 24th calendar week, the Süddeutsche Butter- und Käse-Börse (South German Butter and Cheese Exchange) quoted shaped butter unchanged at EUR 7.40 to 7.80/kg. Prices in the food retail sector also remained stable. The range for block butter was adjusted slightly - now 7.40 to 7.50 EUR/kg - with the upper quotation limit lowered by 10 cents and the lower limit raised by 10 cents. On the EEX in Leipzig, butter futures were weaker. The average price for the contracts from June 2025 to February 2026 fell by EUR 20 to EUR 7,348/t. Nevertheless, 1,500 tons were traded recently, which represents a significant increase compared to the previous week.

The situation on the cheese market remained balanced. Demand was stable in both the food retail and industrial sectors. There was also consistent demand in the mass catering sector, although higher temperatures are expected to further stimulate demand. In Europe, the start of the vacation season had an impact, and buying interest was also reported from third countries. Nevertheless, deals were not always concluded, as competing price offers from other regions presented a challenge. Quotations in Hanover remained unchanged: Bread products were at 4.80 to 5.00 EUR/kg, block products at 4.45 to 4.65 EUR/kg. Despite seasonally declining milk volumes and low stocks, supply has so far been sufficient to meet demand.

The powder markets were calm in the middle of the month. At EUR 2,400 to 2,470/t, food-grade skimmed milk powder in Kempten was at the previous week's level. Prices on the EEX also fell slightly: The average price for maturities up to February 2026 fell by EUR 6 to EUR 2,550/t. Trading there remained subdued at only 250 tons. A firmer price of around EUR 2.0/kg dry matter was achieved for skimmed milk concentrate. Skimmed milk was offered at an average of 2 ct/kg more expensive. In the whole milk powder segment, the solid fat market influenced pricing: the price in Kempten was raised by EUR 10 to between EUR 4,360 and 4,460/tonne. Food-grade whey powder was quoted unchanged at EUR 1,100 to 1,180 per tonne. There was a slight fall of EUR 10 in feedstuff commodities to EUR 780 to 820/t. The EEX quotation stagnated at 897 EUR/t and no new contracts were traded.