Milk News, 23rd / May / 2024

Milk volumes appear to be close to their high for the year. Last week, around 0.5% more raw milk was delivered than in the previous week. More milk is also currently being delivered than in the same week last year. Overall, there is a shortfall of around 0.2% in milk volumes for the first 19 calendar weeks of 2024 compared to the same period in 2023. Prices continue to rise on the concentrate markets. Cream in particular is in high demand. Spot market milk is quoted by the ife Institute at 35.6 cents/kg, another 1.9 cents firmer.

The price of block butter rose sharply. Prices rose by 22 cents at the lower end and 40 cents at the upper end of the trading range. As stocks continue to fall, buyers are also increasingly stocking up on long-term supply contracts, for which the dairies were also able to push through firmer prices. Prices also rose on the world market. At Tuesday's auction, butter prices rose by 4.3% northwards. Butter prices on the EEX rose significantly this week. Molded butter continues to be called up by manufacturers in large quantities. Supply campaigns in the food retail sector have also boosted demand. The price in Kempten also rose yesterday.

Stable prices, high outgoing goods and low stock levels continue to characterize the market for semi-hard cheese. While the food retail trade continues to place orders at a high level, the food service industry in particular has increased its orders slightly, while the industry is currently showing hardly any additional demand. Impetus is coming from the export business. The Whitsun weekend increased demand in the classic vacation destinations.

As in the previous week, prices for skimmed milk powder increased. Demand has improved significantly and business has become more dynamic in the second half of May. Both short-term requirements and longer-term supply contracts are the subject of business discussions. The short supply of goods is playing into the dairies' hands. Calls from the European market are also higher. Prices on the EEX are also rising, particularly in the front dates. Skimmed milk powder rose by 3.5% in the Global Dairy Trade Tender. The price of whole milk powder also increased. Demand has also picked up here. Contracts were concluded with both domestic and European customers. Prices rose accordingly by an average of 50 euros. Whey powder is not affected by the improved demand. Quotations rose slightly at the lower end of the trading range. However, demand for feed-grade whey powder is higher than before.