DCA Benchmarks: Milkfat commentary week 3

Milkfat benchmarks extended their downward move in week 03 (January 15), with declines across butter, cream and AMF. Within butter, Butter (NWE) was published at € 3950 (-170), while regional benchmarks also moved lower: Butter (DE) € 3990 (-130) and Butter (NL/BE) € 3955 (-135). On the liquids side, cream eased more modestly, with Cream (NWE) € 3330 (-30), Cream (DE) € 3315 (-70) and Cream (NL/BE) € 3310 (-65). The steepest weekly move was in AMF (NWE) € 4515 (-485), clearly the standout decline within the group.Dispersion was mixed. Butter volatility remained relatively contained, led by Butter (DE) sDev 2,0%, followed by Butter (NL/BE) 2,1% and Butter (NWE) 2,5%. Cream showed slightly higher variability overall: Cream (NWE) sDev 2,9%, and Cream (DE) 2,8% alongside Cream (NL/BE) 2,8%. AMF (NWE) had the highest volatility of the set at sDev 4,5%, consistent with the sharper weekly correction.SentimentContributor input pointed to a broadly weaker milkfat tone. Several notes suggested cream was slipping away, with good availability meeting low demand, while butter was repeatedly described as under pressure and somewhat weaker. Contributors also drew attention to the persistent imbalance between butter and cream. A longer market view referenced ample milk supply and futures moving lower, alongside continued uncertainty on the timing of any recovery and expectations of further downside for AMF.