Milk market recovers after price rally

Since week 17, the price for spot milk has recorded a rapid increase. As icing on the cake, the price reached a high of 21 euros per 38,50 kilos of milk in week 100. An unprecedented high level for this time of year. In response to this, and perhaps also in view of Pentecost, the supply of milk increased and the price took a step back in early June. 

What do the prices do?
For week 22, the price for Dutch milk, at 4,4 percent fat, amounts to 37 euros per 100 kilos of milk delivered. In the north of Germany, milk delivered at 3,7 percent fat yields a price of 35 euros per 100 kilos of milk. In the south the price shows a very wide spread. On average, the price takes a small step back to arrive at 36,50 euros per 100 kilos of milk, at 3,7 percent fat. 

The slightly lower spot prices for milk do not entirely match the developments in the prices of cream and skimmed milk concentrate. The cream price therefore rises to 6,50 euros per kilo ex work. The plus ignores skimmed milk concentrate, the price of which drops to 1.550 euros per tonne of dry matter.

It is difficult to say where the price drop for concentrate comes from. There is talk of disruptions from some quarters. Others point to skimmed milk powder. Before that, prices rose in both the Netherlands and Germany. In the Netherlands to 197 euros per 100 kilos, up to 1.950 euros per tonne in Germany. A move that is mainly inspired by sellers. Not many things are happening there yet. However, the most realistic explanation for the lower concentrate price is that a lot of milk is skimmed due to high fat prices, resulting in an increase in supply.  

Cheese market looks further
The cheese market is already looking to July with a slanted eye. For June it seems that the cheese is largely gone. The price of Gouda and Edam fluctuates on the daily market at 3,45 to 3,50 euros per kilo. It takes some getting used to for buyers, who are not always willing to participate in the higher prices.

The price of butter is also steadily increasing. In the Netherlands this already stands at 537 euros per 100 kilos, but the market still quotes higher prices here. The Germans quote 5,50 to 5,60 euros per kilo for butter. 

Raw milk relaxes
The raw milk market is calming down for a while, but there are no indications that this will last long. Only the Global Dairy Trade (GDT) of June 6 can throw a spanner in the works. The drivers are the lower liters in Germany (minus 3,7 percent) and France (minus 4,5 percent).

In the Netherlands, supply moves sideways. However, we have to go back again in various places before June cows culled become. In combination with the warm weather, it means fewer liters will be needed. It means that the market remains as fixed as ever.   

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