DCA Benchmarks: Liquids commentary week 24

Liquid dairy markets continue to show a mixed picture. There are no signs of significant oversupply, but demand remains subdued. Likewise, there is still little evidence of a meaningful seasonal decline in milk production.While the DCA benchmarks for raw milk in Northern and Southern Germany increased further to €24 and €27.50 per 100 kilograms respectively, the benchmark for Dutch raw milk fell by €1.50 to €19.50 per 100 kilograms. The decline was triggered by collective labour agreement strikes at several processing sites earlier this week, which resulted in additional milk volumes being redirected to the spot market. No agreement has been reached so far, and trade unions have announced further and more extensive industrial action for next week. The impact of these developments is not yet visible in the intermediate products market. Despite lower milk powder prices, the DCA benchmark for skimmed milk concentrate increased by €130 to €1,825 per tonne. Market participants indicate that the scope for further price increases now appears limited. A similar situation applies to liquid whey, where supply is gradually increasing. The DCA benchmark rose modestly by €15 this week to €1,015 per tonne.