Milk News, 27th / Jun / 2024

The milk volume continues to show a seasonal trend and is falling slightly from week to week. However, the previous year's level is still being exceeded. Around 0.1% more raw milk was delivered to dairies in the first 24 calendar weeks of 2024 compared to the previous year. Due to the summer temperatures and the European Football Championships, demand for industrial cream is good and prices are trending firmer. Skimmed milk concentrate is traded at a balanced level with stable prices, only liquid skimmed milk was able to increase slightly. Spot market milk rose by 0.9 cents week-on-week to 42.2 cents/kg. The commodity value of milk for June rose by 6.1% to 45.3 cents/kg.

Packaged butter is currently in high demand. Prices are rising despite the start of the vacations in the first federal states. Stimuli from the barbecue season and the European Football Championships are cited as the reason for the high demand. The trend for block butter is mixed. The trading range was raised at the lower end in Kempten on Wednesday, but the price fell at the upper end. Producers have hardly built up any stocks so far this year and there is no selling pressure. Price negotiations between buyers and sellers are sometimes difficult. Butter prices on the EEX rose again over the week.

Sliced cheese is traded at a balanced price. The recent somewhat firmer prices will continue this week. Incoming and outgoing goods in the ripening warehouses are also balanced. While call-offs from food retailers and bulk consumers are largely running at the agreed level, further impetus is coming from southern Europe. Here, restaurateurs are preparing for the rising number of holidaymakers.

Prices for skimmed milk powder on the EEX have fallen slightly this week. Prices on the spot markets are also slightly weaker. The market situation is described as calm. There are currently hardly any new transactions. Dairies are currently under little pressure to sell, as the declining volume of milk and manageable inventories mean that there is no such pressure. Demand for feed qualities is still weak. Trade in whole milk powder is also quieter than usual. Individual contracts are being concluded with customers from the European domestic market. Due to the firmer trends for industrial cream, slightly firmer whole milk powder prices were achieved. Whey powder continues to be traded quietly, with prices at the lower end of the trading range increasing by 20 euros to 940 - 1,020 euros/t. Despite the high cheese production and the high proportion of available whey, prices are still stable. However, buyers are becoming increasingly cautious with regard to prices.