DCA Benchmarks: Powder market commentary week 31

The dairy powder market presented a mixed picture on week 31 (July 30), with milk powder strengthening and the whey powder remaining under pressure. Overall, contributors described a cautious market, with firmer prices in some powder categories contrasting with a quiet market activity, especially in feed grade commodities.SMP led the increase in the milk powders segment, with SMP Food closing at €2,770 (+1.1%) and SMP Feed at €2,695 (+0.6%). This commodity has observed positive developments over the last month and remains consistently above the previous year’s levels. WMP offers more moderate results, remaining stable over the previous week at €3,175. Yet again, WMP remains weakly priced compared to the previous year, despite a 2.4% monthly increase in prices.In contrast, the whey complex marked a clear negative trend. In the food segment, benchmarks declined by 0.9% over the previous week to €1,685, while the feed segment declined further by 2.8% to €1,685. This underlines a distinct performance for each segment: while the food segment remains fluctuating at a high level, the feed segment is consistently moving down. This could respond to the fact that SWP Feed (+75%) stands relatively better priced than SWP Food (+58.2%) over the previous year, potentially indicating that the feed segment is less competitive.Both lactose and FFMP remained broadly stable in the week, with benchmarks reaching €1,580 (0%) and €2,675 (-0.9%), respectively. Both benchmarks remain resilient in the medium and long term, with gains over the previous month and the previous year. Contributor notes were diverse, with several participants reporting slightly firmer powder prices and better sentiment and buying interest gradually returning to cover Q4 requirements. At the same time, other contributors noted that market activity was notably quiet, particularly in the feed segment where little or no trade was reported.