DCA Benchmarks: Liquid market commentary week 37

The liquid dairy market does not move higher this week, despite the seasonal decline in milk supply. Skimmed milk concentrate (SMC) remains readily available, according to traders.The liquid dairy market presents a mixed picture. There are reports of shortages in the fresh segment, with some supermarkets in the Netherlands not fully stocked with products such as Skyr.Lower SMC pricesThe spot market shows a different picture. SMC is well available, putting prices under pressure. The DCA benchmark decreases by EUR €105 this week to EUR €3,025 per tonne. At this level, SMC remains relatively expensive compared with skimmed milk powder (SMP), helping to explain the correction. Demand from the fresh segment also typically weakens at this time of year.The DCA benchmark for liquid whey concentrate decreases by EUR €100 to EUR €1,400 per tonne, continuing the fluctuating price pattern seen in recent weeks.Declining raw milk pricesThe decline in spot milk prices is more notable. Prices had risen sharply in recent weeks, making this week’s decline a break from that trend. The DCA benchmark for raw milk in the Netherlands decreases by EUR €2.00 to EUR €44.50 per 100 kilograms. As a result, the premium over farmgate milk prices has largely disappeared.Despite the lower prices, the liquid dairy market remains firm. The seasonal decline in milk supply provides support, alongside stronger cheese prices.