DCA Benchmarks: Milkfat commentary week 27

The milkfat markets observed a major recovery in week 27, with all of the DCA benchmarks increasing compared to the previous week. Cream, butter, and AMF all recorded gains amid tightening milk availability and improved demand. Cream led the increase, reflecting its greater sensitivity to short-term supply constraints, while butter prices also strengthened despite wide price differences between fresh and older inventories. Contributors attributed the recovery to lower milk availability following the recent heat wave and seasonal production declines, although trading activity slowed after the rapid price increases.