DCA Benchmarks: Liquids commentary week 22

Liquid dairy prices continue to edge higher, broadly in line with the long-term seasonal trend. Possible strike actions at Dutch dairy plants are, for now, having no impact on the spot market.The DCA benchmark for raw milk has increased by €1.50 to €21 per 100 kilos. In Germany, price increases are moving slightly faster. Trading activity on the spot market is described as relatively quiet. Milk supply still slightly exceeds demand at the moment. As the seasonal peak in milk production comes to an end, factories across Northwest Europe are operating at or near maximum processing capacity. Prices are nevertheless moving higher as the market gradually returns to a more balanced position.In the Netherlands, strike actions may take place next week at several FrieslandCampina production sites following stalled collective labour agreement negotiations. Despite this uncertainty, spot prices remain unaffected for the time being, although market participants are monitoring developments closely.Following the sharp rebound seen during the first half of May, the skimmed milk concentrate market is now continuing its upward movement at a slower pace. The DCA benchmark rises by €50 to €1,775 per tonne. Market sentiment was clearly bullish at the start of the week, although conditions became more cautious from Wednesday afternoon onwards. Slightly weaker skimmed milk powder prices are helping to bring both markets back into better balance. The DCA benchmark for liquid whey concentrate remains stable this week at €1,085 per tonne.