Milk volumes remain at a high level, even though weekly milk volumes are declining as is typical for the season. In the first 22 calendar weeks, just as much raw milk was tendered as in the same period of the previous year. Demand for cream remains high and the desired quantities are not always immediately available. Nevertheless, prices have recently remained at the increased level. Demand for skimmed milk concentrate has calmed somewhat. At 41.6 cents/kg, spot market milk is 1.5 cents weaker than a week ago.
The price trend on the butter market is inconsistent. The higher consumer prices have not yet affected demand for molded butter. In fact, dairy farm-gate prices even rose when quoted on Wednesday. On the other hand, demand for block butter has calmed down. Prices are trending weaker. Demand is declining, particularly for short-term requirements, and there is still a lack of impetus from the export business. The price structure for butter on the EEX is also declining this week.
On the other hand, the quotation commission in Hanover raised prices for semi-hard cheese. Bread rose by an average of 5 cents per kilogram. Demand is at a consistently high level and incoming and outgoing goods continue to balance each other out in the ripening warehouses. As a result, dairies continue to build up hardly any new stocks. The goods are leaving the warehouse relatively young. Demand from the outdoor catering sector is somewhat lower. The cooler weather of the past few days has dampened demand in this sales channel. The vacation regions of southern Europe are continuing to place brisk orders and are preparing for the start of the vacations in Germany.
Prices on the powder markets are stable overall. Food-grade skimmed milk powder is trending slightly weaker. This is reflected both in the price quotation in Kempten and the price trend on the EEX in Leipzig. There is currently a lack of impetus from the export market in particular. New business with domestic customers mainly relates to short-term delivery dates, but the volumes traded are lower than in the previous year. Feed qualities continue to be traded within an unchanged trading range, and the market trend here remains manageable, as it has been throughout the year. Whole milk powder traded firmer once again. This was mainly due to the recent firmer prices for industrial cream, which also influenced production volumes. Whey powder continues to pick up in the course of business. The quotation for food products remains unchanged from the previous week at 950 - 1,020 euros/t. Business deals are mainly concluded with customers from the European food industry.
ZMP Live Expert Opinion
The development of the dairy market and the outlook can be summarized in one word: stable.
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