DCA Benchmarks: Liquids commentary week 18

The DCA benchmarks for raw milk in Germany moved lower, while prices for skimmed milk concentrate and whey concentrate increased. Despite these movements, price levels remain relatively low from a historical perspective.The increase in skimmed milk concentrate is mainly driven by stronger demand from Southern Europe. As the tourist season gains momentum, demand for raw materials is rising. In addition, powder producers are actively sourcing both skimmed milk concentrate and whey concentrate. Compared to current milk powder and whey powder prices, liquid raw materials remain competitively priced. At the same time, processing capacity continues to operate at full utilisation.With April coming to an end, milk supply in Northwest Europe appears to have reached its seasonal peak. However, market expectations are that supply will remain at a high level in the coming weeks and is unlikely to decline significantly in the short term. No disruptions from processing downtime are expected next week.Demand for spot milk remains limited. Even at current low price levels, it remains challenging to find outlets. The decline in German benchmarks reflects this situation. The benchmark for raw milk in Northern Germany decreased by €2 to €11 per 100 kg. In Southern Germany, the benchmark also declined by €2 to €12.50 per 100 kg. In the Netherlands, the benchmark remained stable at €10 per 100 kg. For already ten weeks, prices in the Netherlands have been the lowest.