DCA benchmarks: Liquid commentary week 6

With the exception of skimmed milk concentrate, which is rising in line with stronger milk powder prices, most liquid DCA dairy benchmarks were relatively stable this week. Ample milk supply continues to keep prices at a relatively low level.Among all DCA dairy benchmarks, skimmed milk concentrate showed the strongest increase this week, up 16.4% to €1,665 per tonne. Prices are moving higher in line with skimmed milk powder, which is benefiting from improved sentiment on the global market. Demand has increased, resulting in higher prices, even though stocks in Europe are not particularly tight. Rising prices are giving producers more confidence to increase powder production, which is supporting demand for skimmed milk concentrate. Liquid whey concentrate prices are also moving higher for the same reason. The benchmark increased by €5 to €785 per tonne, the highest level since last summer. Raw milk For other liquid dairy products, the picture is less supportive. With the raw milk benchmark around €20 per 100 kilos, there should theoretically be buying interest. In practice, however, processing capacity in Northwest Europe is fully utilised. Surplus volumes are sold at very low prices, well below the farm gate milk prices. Trading volumes remain limited, according to market sources. Prices for skimmed milk and liquid whey are also stable at around €8 per 100 kilos, which is historically a very low price level.