DCA benchmarks: Liquid market commentary week 31

The liquid market had mixed results this week, with raw milk benchmarks showing different behaviour by region, skimmed milk concentrate reported as a thin market, and SMC recording another pick-up in prices.The DCA benchmarks for raw milk delivered mixed results, with the Netherlands and Belgium increasing by €1 to €36.50 per 100 kg. In North Germany, prices eased by €1 to €34.50 per 100 kg, while South Germany was broadly stable at €36.50 per 100 kg (+€0.50). Trading activity remained thin, and the market seems to be coming more into balance following the heat stress of recent weeks and the seasonal decline in milk intake.Skimmed milk concentrate (SMC) recorded another strong increase this week, rising by €285 to €2,910 per tonne, with offers reaching as high as €3,100 at the upper end of the range. Although the SMC benchmark reached its highest level of the year at €3,115 in week 28, prices are strengthening again on the back of higher demand from Southern Europe, including Greece. As a result, the SMC premium over SMP has widened. SWC also increased this week, rising by €140 to €1,340 per tonne. The market was more volatile, with prices ranging from €900 to €1,550 per tonne. This wide range may partly reflect differences in origin and quality, as not all types of SWC are suitable for the production of high-protein products for instance.