DCA Benchmarks: Powder market commentary week 32

DCA dairy powder benchmarks moved consistently higher in week 32 (August 6), with gains observed across both the milk and whey powder despite subdued trading activity. Whole Milk Powder recorded the strongest rise, while whey powders continued their strong upward momentum, supported by tight supply. Market participants highlighted a wide gap between buyer and seller price expectations.Within the milk powders, SMP Food strengthened across both food and feed segments. SWP increased by 3.4% over the previous week to €2,865, while SMP Feed moved up by 1.7% to €2,740, with some contributors noting a higher buying interest. Whole Milk Powder (WMP) recorded the strongest increase in the powder category, rising by 11% to €3,525, supported by a lack of availability in the region. Despite this major increase, WMP remains 14.1% below previous year’s levels, while SMP remains 16.6% to 22.4% above. Within the whey complex, both commodities reported notable gains. SWP Food increased by 7.1% week-over-week to €1,805, while SWP feed rose by 7.5% to €1,505. This cemented a 6% month-over-month increase for the food segment and a more moderate gain of 2% for feed. Yet again, whey powder has observed a notable gain compared to the previous year, ranging between 58.3% and 78.1%. Lactose also posted a 1.3% weekly increase to €1,600, supported by a limited availability. Contributors pointed to a relatively quiet market in terms of trading activity despite widespread increase across the benchmarks. Particularly in the milk powders, there is a substantial gap between buyer and seller pricing, which has also contributed to the limited activity in trading. Contributors also noted subdued export demand due to seasonal factors in the Middle East and North African (MENA) region, which could offer some price pressure, although declining milk collections and elevated drying costs noting were noted as supportive for prices.