Spot market milk not out of touch due to extra supply

The picture is somewhat mixed. In the Netherlands, the spot milk price this week actually remained the same as last week, but then the price dropped DCA spot milk listing considerable. That is not the case this time. In Germany, the spot milk price even recovered slightly.

This happened against the backdrop of reports of increased availability of raw milk. Especially from France. This relatively cheaper milk can be sent to Northern Germany and the Netherlands, but not to Southern Germany. In the latter region, only Vlog milk is required and French milk does not meet that criterion.

Milk supply increases seasonally
It does not alter the fact that the supply of French milk does not appear to have any noticeable influence on spot prices further north. While the milk supply there also increases seasonally (but is still slightly behind last year).

The same applies to an additional supply of cream and skimmed milk concentrate from Poland and the Baltic countries. There, some processors have to divert their product flow due to the war in Ukraine and the sanctions against Russia and Belarus. More product is therefore entering the Central European/German market. However, the tightness on the market here (and possibly also the additional product requirements) is such that it does not negatively affect price formation here. 

Remarkably, despite the positive tone, sentiment on the liquid dairy market appears to be somewhat calmer than on the butter and powder market. Last week's hesitation, which occurred after the start of the war in Ukraine, has given way to additional tension, causing product prices to rise further.