News milk
Despite records, peak dairy market does not appear to have been reached
The supply of raw milk is very scarce in the Netherlands. The prices for conventional raw milk on the spot market are at the level of organic milk. The market in Germany is also very thin. from Poland and Great Britain, according to reports, a little extra liquid product will be available, but this has not yet had a really noticeable effect on prices. Everything goes further up, also with the powders and cheeses.
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A spot quotation of €60 per 100 kilos or more is gradually coming into view. Milk production is still below the level of recent years. Dairy farmers in the Netherlands also do not count on being able to increase the milk supply quickly. Despite the relatively high milk price, the composition of the ration is not suitable for this during this period.
Both in the Netherlands and in Germany spot quotations for raw milk are therefore making a jump. The DCA spot quotation for raw milk this week (week 7) amounts to €55,50 per 100 kilos delivered at 4,42%. Last week this was € 53,00 per 100 kilos. Spot quotes for northern and southern Germany also show an upward trend. The DCA spot quote for Northern Germany also trades this week at €55,50 per 100 kilos at 4,2% delivered (last week it was €53,50). In southern Germany, spot milk costs an average of €57,50 per 100 kilos (last week €55,50).
Room is even closer to €7.000
Cream follows in the slipstream of butter on favorable developments on the demand side and the limitations of the lower supply on the milk side. With an average DCA quotation of €6.960 per tonne ex works, Room is again closer to the €7.000 mark (last week €6.840 per tonne). This brings cream back to the level of week 49 of last year. In this week's tailpiece, the asking price of cream is already well above €7.000, so the expectation that the listing will rise further next week seems justified.
Butter also remains stable above € 6.000 and the producers expect that the price of butter will remain above this level for some time. In addition, it is feared that buyers of butter will struggle with the relatively higher purchase price over time and (where possible) will look for vegetable substitutes such as margarine.
Of course, the risk of a drop in demand always hangs above strongly rising markets. This is also a real risk for milk powders, because the price for skimmed milk powder in particular rose sharply. Whole milk powder followed. Perhaps this move was also to be expected after another positive GDT auction like earlier this week, but there is and remains good demand, according to traders.
Cheese prices also continue to rise unabated, as do those of whey powder. Whey powder for human consumption even exceeded €1.400 per tonne at DCA this week.