DCA benchmarks: Milkfat commentary week 14

After several declines, butter benchmarks for the Netherlands and Belgium show a slight upward movement this week, while cream benchmarks are rising strongly. Overall, the butter market remains broadly stable based on DCA benchmarks across regions. The Northwest Europe benchmark decreased by €5 to €4,085 per tonne, while the German benchmark remained unchanged. Despite this stabilisation, traders indicate that underlying market fundamentals are still putting pressure on butter prices. This is mainly due to ample stocks and high milk supply in Europe, which is moving towards its seasonal peak. Increase for creamIn contrast, the cream market is currently moving in a different direction. The Northwest Europe benchmark increased by €325 to €4,145 per tonne. This rise is driven by the fact that cream had been relatively undervalued compared to butter, which is now creating additional demand. In addition, the disruption to trading around Easter is now (almost) behind the market. According to market participants, cream supply remains relatively ample, but this is currently matched by improving demand.