Milk News, 01.11.2024

At the end of October, milk deliveries continued to fall and reached a new 3-year low. Producers delivered 1.3% less to dairies than in the previous year and 0.3% less than in the months from January to October. The submarkets have shown little activity in recent days, with market participants acting cautiously and wait-and-see. Spot prices for raw milk continued to rise in Germany. The ife Institute in Kiel has published a price of 60.9 cents per kilogram for the domestic product. This corresponds to an increase of one cent compared to the previous week.

At the end of the month, the market for packaged butter remained buoyant as food retailers demanded large quantities. The regional public holidays this week also contributed to the increased demand, which satisfied manufacturers in particular. Good demand is also expected in the coming weeks due to the start of the fall and baking season. Prices remained stable, and the price of molded butter at the South German Butter and Cheese Exchange in Kempten was unchanged from the previous week. Consumers paid EUR 2.39 for a 250-gram packet of German brand butter in the supermarket. Negotiations between retailers and dairies for new contracts from November are ongoing, with the high price level for cream repeatedly being discussed. Meanwhile, sales of block butter are rather sluggish, and discussions and deals are particularly focused on business in the new year. Buyers had to accept higher prices, especially for short-term orders. The price structure was stable to slightly weaker. The average price on the EEX was EUR 7,055 per tonne, which was even EUR 86 higher than in the previous week. Contract turnover, on the other hand, declined slightly.

At the end of last month, trading on the German cheese market remained active. Demand in the food retail sector remained high, partly due to the pull-forward effect before public holidays. The industry called off contracts as planned and the bulk consumer sector also recorded steady sales. Business with southern European countries was in line with the usual seasonal pattern, while inquiries from third countries only partially resulted in business due to differing price expectations. The fairly brisk trade was offset by a short supply caused by the seasonal decline in milk deliveries, which limited the availability of raw materials. Stocks in the ripening warehouses remained low and the age structure of the goods was young. Cheese prices remained high due to the combination of limited supply and brisk demand. Prices for block goods remained largely unchanged, while the price range for bread goods was raised by an average of 10 cents compared to the previous week.

On the milk powder markets, the picture was calmer again last week after slight impulses in trading. Where deals were concluded, they mainly related to deliveries in the first quarter of 2025. Market participants described supply as sufficient and prices fell slightly. Prices of between EUR 2,450 and EUR 2,550 per tonne were recorded on the butter and cheese exchange in Kempten, which represents a decrease of EUR 20 to 30 compared to the previous week. The market for skimmed milk powder in animal feed quality remained calm and stable due to the low supply. Prices on the exchange in Kempten remained unchanged at EUR 2,300 to 2,340 per tonne. Contract prices for skimmed milk powder on the European Energy Exchange (EEX) in Leipzig also fell at the end of October. The average price for the period from October 2024 to June 2025 was EUR 2,599 per tonne, which is EUR 26 less than in the previous week. However, trading was more active, with a total of 2,820 tons (564 contracts), an increase of 425 tons (85 contracts).