Milk deliveries are developing dynamically and appear to have reached their seasonal peak. The previous week was exceeded by 0.3% and the same week of the previous year by as much as 1.1%. However, around 0.1% less milk has been produced since the beginning of the year than in the previous year. Prices on the concentrate markets are also firm this week. Cream in particular is in demand. Spot market milk is quoted at 41.0 cents/kg by the ife Institute and is therefore trading a significant 5.4% higher than a week ago.
The butter market has continued to pick up. Block butter rose significantly, the trading range was raised by EUR 0.25 at the lower end and EUR 0.20 per kilogram at the upper end. Prices are also firmer on the EEX. Not all requests for block butter in particular can currently be met, reflecting the recent very low production volumes and stock levels. Moulded butter is still being requested at a high level, and in the south and west in particular there are also anticipatory effects due to the public holiday on Thursday. Prices are moving sideways.
Demand for cheese remains good. Calls are at a high level and stocks remain young and low. Despite higher milk volumes, producers are not able to build them up further. Prices remain stable. It is reported that demand from exports has decreased somewhat, with the exception of calls from the southern European vacation regions.
Skimmed milk powder is also showing a clear upturn. The supply of fresh goods is limited and there is demand for both long-term and short-term deliveries. The export business remains quiet, but domestic demand is sufficient to push up prices in Kempten. On average, this has risen by 50 euros/t. Prices on the EEX are firmer. Feed grades, on the other hand, continue to be in low demand, although these prices also rose slightly in the wake of the price increase for food products. The price of whole milk powder also increased by 50 euros/t to between 3,750 and 3,850 euros/t. New contracts are also being concluded here, although the volume level has calmed down again somewhat. Prices for whey powder are stable and remain unchanged. Business activities have increased again somewhat, but are not providing any sustained impetus due to the high cheese production.
ZMP Live Expert Opinion
The milk market is in firm shape. Prices are continuing to rise and have bottomed out. Lower inventories coupled with good demand and impetus from the summer weather in May and the asparagus season are leaving their mark and pushing up product prices.
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