Milk News, 28th / Mar / 2024

The milk quantity development shows a typical seasonal trend. Compared to the previous week, the dairies recorded around 1.0% more raw milk than in the 10th calendar week. In the first eleven weeks, dairies had around 0.9% less raw milk available for processing than in the same period last year. There is lower demand for spot market milk on the raw material markets, which has fallen by 3.1 cents on a weekly basis to 32.5 cents/kg on a national average. Cream is also less in demand; only skimmed milk concentrate shows a slightly higher demand. The ife Institute in Kiel determined an ex-farm raw material value of 42.2 cents for March, 0.1 cent less than in February. There is fundamentally stable development on the butter market. The demand for molded butter reached its holiday-related peak last week, the arrangements for this week have been completed and the demand from the food retail sector has calmed down. Dairies are taking advantage of the lower output of goods to replenish inventories. The quotation remains unchanged. Block butter is trading quietly with stable prices. Because of the holidays, some dealers are not active due to the holidays, but discussions are still being held in which buyers and sellers often cannot agree on price. There are also stable price trends on the EEX. Cheese continues to be widely purchased. However, food retail sales peaked in the previous week. However, special offers in the food retail sector ensure that high orders and stable demand are still expected. The quotations in Hanover and Kempten remain unchanged this week. However, additional inquiries outside of the contracts are hardly ever received. Large consumers and industry make purchases to an agreed extent. Inventories remain at a low level. However, production has increased due to increasing milk supplies. The price of skimmed milk powder in food grade was also weaker yesterday, but the downward trend has noticeably lost momentum. Although traders are reporting that business is still going smoothly, they are also seeing the onset of stability at the recently lower level. The volume of new business has improved somewhat, although activity overall is limited due to the Easter holidays. Demand for feed products is also slightly better again and prices in Kempten are unchanged from the previous week. Both short-term and longer-term contracts are traded for whole milk powder. Supply and demand are very balanced here; prices remain unchanged from the previous week with a trading range of 3,550 to 3,650 euros per ton. There is a more extensive range of whey powder due to the higher cheese production. The price fell slightly and business activities are further restricted due to the Easter holidays.