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Welcome to the BDC agri blog. Here you will find reports from some of the events we attend, as well as Greg's popular weekly view of the UK milk and whey powders market:

 

"Many years ago, I got my first job in the dairy industry, as class milk monitor at Tollesbury Primary School.
I thought it was a job for life, but sadly Margaret Thatcher famously ‘snatched’ free school milk,
and the nation’s health has suffered since. Fifty-four years later, I am still musing on the dairy industry,
with an irreverent view of politics and currency ..." G
reg Dunn



Just knocking out a quick market report between the two days of the Pig & Poultry Fair. In short, no change in whey, skim milk down a paltry €20, less than 1% and no material change to spot supply prices. 

 

However, the status quo looks to be challenged on the upside, as purchasing activity is definitely on the up, and offers from suppliers are not as ready as in April, so the next move, when it comes, looks to be northwards. Having dropped to as low as a week back along, supply from the factory is now out to two and a half weeks from order, plus delivery, so tangible evidence of returning confidence.

 

In a correction to last week’s report (thank you to my eagle-eyed reader), the flooding in Rio Grande do Sul affects 34% of the remaining unharvested are, as the job is pretty well done (80%+). However, despite the mega national Brazilian crop, the weather market still supports beans, meal and oil at pretty much unchanged levels over the week, with palm oil mirroring soya.

 

Back to the overheated pleasures of the NEC …..


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






Milk powders are totally unchanged in a very quiet week for Europe, with May Day, Liberation and Ascension engendering holiday ‘bridge’ days, as they are known.

 

Aside from the human tragedy that has been visited on Rio Grand do Sul in southern Brazil by extreme flooding, the news that 34% of the unharvested soy crop in the state is under water has rocketed soya bean and meal prices on CME, peaking two days ago at 100 cents and $30 respectively. Prices have fallen back somewhat, but soy oil showed little reaction, and palm oil only showed a minor spike.

 

So as far as milk powders are concerned, markets remain quiet heading into summer proper, much the same as last year.


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



Sweet whey flatlined again this week, but skim milk surprised with a €30 hike. Looking at skim, I must admit to having had my eye off the ball for the Dutch production figures, that were giving cause for concern as they plunged during early autumn last year. Because the December line doesn’t feature on the graph, the huge jump from 4,700 tonnes to 7,300 tonnes for the month was a real game-changer, and might explain why the skim market fell €200 since the beginning of the year. 



The biggest influence in background markets is undoubtedly crude oil, with the benchmark US indicator now down to $78, from its Israel/Iran peak of $90. Whilst US soybean futures have remained pretty much unchanged, hanging on to a minor story about striking stevedores in Argentina in the face of Brazil stealing the lion’s share of the Chinese market, soy oil has dipped another 6% plus this week, most of that in the last two sessions. Thus the spillover into biofuel mandates forcing vegoils south. 

 

The palm oil market is still being selective in which metrics it is subscribing to, ignoring a seismic reduction in Indian imports, as cheaper sunflower oil continues to dominate 

 

News from the sales side of milk powders/blends is that demand is brisk, far more than in Q1, so whilst a lot of milk is being processed, stocks wouldn’t appear to be building enough to force either whey or skim downwards, so we may see equilibrium for a month yet. Unless, of course, ‘events’ prove otherwise. 


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



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