DCA benchmarks: Liquid market commentary week 36

The seasonal decline in milk collections is further tightening the liquid dairy market. This is resulting in higher prices across most of the market, with cream being the exception.In addition to tighter availability, firmer prices for products including cheese and milk powder are also supporting higher prices in the liquid market.Surplus volumes are no longer available. This is reflected in the DCA benchmarks for raw milk, which are trading above the milk prices paid to dairy farmers. Buyers looking to secure volumes have to pay a premium. The DCA benchmark for raw milk in the Netherlands rises by EUR €2.50 this week to EUR €46.50 per 100 kilo. The German market is also firming, although at a somewhat slower pace. French spot milk is considerably cheaper, with volumes trading at around EUR €40 per 100 kilo. Skimmed milk concentrate and whey concentrate are also in tight supply. Demand remains good, despite concentrates being relatively expensive compared with powders. This suggests there is confidence in further strengthening of the powder market.The DCA benchmark for skimmed milk concentrate rises for the fourth consecutive week, gaining EUR €85 to EUR €3,130 per tonne. Notably, the weekly increases have been relatively consistent. The DCA benchmark for whey concentrate has been somewhat more volatile, but the trend has nevertheless been upward. This week, the benchmark rises by EUR €110 to EUR €1,500 per tonne.