DCA Benchmarks: Liquids commentary week 23

The liquid dairy market presents a mixed picture. While raw milk prices continue to move higher, prices for intermediate products such as skimmed milk concentrate, whey concentrate and cream are coming under pressure.Overall, the market remains characterised by ample supply, although seasonal milk volumes are gradually declining. This has not been sufficient to support skimmed milk concentrate and whey concentrate prices. The main reason is the weakness in the milk powder market, while the whey powder market is also providing limited support.Powder producers remain active buyers of concentrate, but only at competitive price levels. The DCA benchmark for skimmed milk concentrate declines by €80 this week to €1,695 per tonne, marking the first decrease after a period of rising prices. The DCA whey concentrate benchmark also falls by €80 to €1,000 per tonne.Meanwhile, spot milk prices continue to strengthen, particularly in Germany. The DCA benchmark for Dutch raw milk remains unchanged at €21 per 100 kilograms. The strikes at three FrieslandCampina production sites earlier this week have so far had little impact on the spot market. This could change if industrial action spreads to larger production facilities. The DCA benchmark for Northern German milk rises by €1.50 to €22.50 per 100 kilograms. Supported by Italian buying interest, the benchmark for Southern German milk increases by €2 to €26.50 per 100 kilograms. Market sources indicate that, on an occasional basis, prices above €30 per 100 kilograms are once again being paid.