DCA Benchmarks: Liquids commentary week 26

The liquid dairy market remains relatively quiet this week. High temperatures have reduced milk production, resulting in tighter supply. At the same time, demand for liquid dairy products remains subdued, as virtually all dairy commodities continue to face downward price pressure.The price gap between Dutch and German raw milk has widened this week. The DCA benchmark for Dutch Raw Milk declines by €0.50 to €19.50 per 100 kilo, partly due to production disruptions caused by labour strikes over a new collective labour agreement. In contrast, the DCA benchmark for Northern German Raw Milk rises by €2.00 to €22.00 per 100 kg. The benchmark for Southern German Raw Milk increases by €4.00 to €25.50 per 100 kilo, supported by buying interest from Italy.Skimmed milk concentrateThe skimmed milk concentrate market remains stable, with trading activity described as quiet. The DCA benchmark declines by €35 to €1,910 per tonne. Prices are in line with last year. Unlike the cream market, stronger demand from the fresh dairy segment has not provided additional price support. The whey concentrate market is also stable, with the DCA benchmark easing by €20 to €1,015 per tonne. Milk production in Northwest Europe is expected to decline temporarily due to the current heatwave. As a result, milk availability is likely to be lower in the coming week. However, the high temperatures are expected to be short-lived. Cooler weather is forecast from next week onwards, suggesting that pressure on milk supply will not persist.