DCA Benchmarks: Milkfat commentary week 22

Price movements on the butter and cream market remain relatively limited this week. Butter prices continue to move largely sideways, while the expected increase in cream prices is continuing.The DCA benchmark for cream in Northwest Europe increases by €150 this week to €4,335 per tonne. The DCA benchmark for butter declines slightly by €15 to €3,955 per tonne. Despite the widening price gap, cream remains attractively priced for butter producers. As a result, buying interest from the butter industry remains present on the spot market, alongside demand from the fresh segment.Meanwhile, butter stocks in Northwest Europe remain ample, according to market insiders. This is expected to limit the potential for significant price increases in the near term. At the same time, the current oversupply appears to be largely priced into the market. The general expectation is therefore that the butter market will maintain its current stable price pattern for the time being. The cream market could continue to strengthen further as the seasonal peak in milk supply gradually weakens. AMF prices are also moving relatively steadily, although with a slightly firmer undertone. The DCA benchmark increases by €75 this week to €4,875 per tonne.