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

The Dutch market has flatlined for five straight weeks now on both whey and skim milk powders, but whey is starting to decline in France, as predicted. Why skim has remained unchanged is a mystery, as there are simply very few offers of spot material in the market. Perhaps one reason why skim isn’t going up is the possibility of an imminent collapse in demand from the UK if the £793.00 per tonne tariff is applied from January 1st in a no-deal outcome to Brexit.

Sterling is still rangebound, with no-deal mostly priced in, but with good upward potential if agreement is met.


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

A very short report this week, as the milk powder market is totally unchanged, with the same message; whey is in oversupply and skim milk in undersupply.

The only bearish influence come surprisingly from sterling strength, despite dire economic growth figures for September, continued Brexit standoff and the international game of lockdown poker between the G7 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

The market’s as flat as the Nullabor Plain, but to continue last week’s vibe, a parting of the ways between whey and skim looks possible.

All sorts of off grade wheys are being wheeled out into the market by processors, which usually presages a fall in prices, as a cupboard clearing exercise. This is usually the kit that they hold on to in a rising market, to minimise the loss of messing up the production process. So there’s lots of whey about and not much interest from exporters.

Skim milk, on the other hand, is still hot property for export, and despite the unchanged market this week, producers are holding stock back for higher prices, and traders are happy to go long.

Sterling is rangebound between €1.09 and €1.11 and $1.28 and $1.30, and only a breakthrough with the EU is going to change that in an upward direction.


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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    BDC agri is a trading name of Black Diamond Commodities Ltd, UK Registered Company No 06821585,