25 February 2021: Unchanged. But unsupported?

The milk powder market is largely unchanged, but more significantly, unsupported.

The main reason for this is an about-turn in purchasing from SE Asia, perhaps the classic Chinese Breakdown, as the buying demand seen over the past quarter has vaporised, and red-faced traders are finally offering spot supplies of sweet whey. So, the market is unchanged, may even rise €10 or €20 over the coming weeks, but the underpinning seems to be disappearing, so we should see a falling market going into Q2.

It’s not the same story with skim milk, though, as that market is still fundamentally undersupplied, and has increased by €10 over the last week. It should ease with spring calvings boosting milk supply, and hopefully be helped down by falling whey prices, but that could be further into Q2.

Sterling has regained 30 month highs, topping €1.16 and $1.41, as the UK’s economic recovery from Covid is promised to be faster than other major economies.

BDC agri is the UK broker for Lacto Production milk and whey powder products.

 For further information and prices, contact Greg Dunn on 01206 381521 or g.dunn@blackdiamondcommodities.com