Dip in milk supply does not cause panic

Both trading companies and milk processors report that the weather is causing a dip in milk supply, which is already showing a seasonal decline. In Germany, the weekly milk supply is already at the level of 2017, although it has been well above that level so far this year. Here in the Netherlands it is also noticeable that there is less milk. However, it is expected that the milk supply will pick up again, partly due to the rising temperatures. 

In Germany, spot milk prices are rising, driven by the buying spirit from Italy. The DCA quotations for Northern and Southern Germany therefore show an increase (+€0,50) to €33,50 and €35,50 per 100 kilos respectively (at 3,7% fat). In the Netherlands, the listing is stabilizing as expected at €33,50 per 100 kilos (at 4,4% fat).  

Offer more than sufficient 
Although the availability of raw milk is under pressure, there is more than enough cream in circulation. Cream prices are currently not in a clear direction and have fluctuated somewhat during this week. Based on the statements, the DCA cream price will drop by €50 this week to €4.200 per tonne. Despite high temperatures, demand from the fresh segment is not excessively high. Overall sentiment on the fat market remains weak, although butter prices have found a bottom at approximately €3.600 per tonne.

The demand for skimmed milk concentrate remains good. The DCA quotation increases by €30 to €1.800 per tonne. The statements show considerable differences, depending on origin and destination. A ceiling is in sight, because prices for skimmed milk powder are trending downwards. In contrast, the cheese prices to have found a bottom, after a number of major price falls in a row.

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