Milk News, 24.10.2024

Milk deliveries continued to decline at the beginning of October. Last week, the weekly delivery volume was 0.7% lower than the previous week and 2.1% lower than the previous year. In addition to the seasonal trend, the consequences of bluetongue are now particularly evident. Developments on the raw materials market were accordingly characterized by shortages and high prices, which led to limited production. Spot milk prices remained largely stable in Germany (-0.1 cents to 59.90 cents/kg), while they rose by 1.7% in the Netherlands and slightly in northern Italy.

Demand on the cheese market remained brisk in the second half of October. However, the shortage of raw materials continued to lead to low production and low stocks in the ripening warehouses. This was also evident in the food retail sector, where there were significantly fewer promotions due to poor availability. Market participants expect supply to remain almost unchanged in the coming weeks, as the shortage of raw materials means that production is unlikely to increase. The consequences can also be seen in the first quarter, with hardly any deals being concluded. Both buyers and producers are cautious. Cheese prices remained at a high level. In Kempten, prices remained unchanged, with block products at EUR 4.60 to 4.75/kg and bread products at EUR 4.60 to 4.90/kg.

Demand for packaged butter remained high in the second half of October, despite price increases. Consumer prices rose to EUR 2.39 for a 250-gram packet of German brand butter, which did not affect demand and marked a new record high. Prices for molded butter remained stable. On the butter and cheese exchange in Kempten, packaged butter was quoted at between EUR 8.50 and EUR 8.80/kg on 23.10.24, unchanged from the previous week. The market for block butter was quiet, with subdued new business. Prices remained stable, ranging from 7.95 to 8.20 EUR/kg. The average price for butter on the EEX in Leipzig rose slightly to 6,969 EUR/t, while the trading volume increased to 1,215 tons.

Trading on the market for food-grade skimmed milk powder was somewhat more dynamic again, even though market participants were primarily focused on the first quarter of next year. However, export business remained quiet without any major impetus. Price trends were not always consistent. Occasionally, discounts had to be accepted. In Kempten, the price was between 2,480 and 2,570 EUR/t, 20 EUR less than in the previous week. On the EEX, the average price for maturities from October 2024 to June 2025 rose to EUR 2,625/t, EUR 18 more than in the previous week. The market for skimmed milk powder in animal feed quality remained calm with stable prices between EUR 2,300 and EUR 2,340/t.