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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




After the equilibrium of the last two months, it look like we’re off to the races again. Skim grabs the headlines this week, up €60, the best part of 3%, but sentiment has fundamentally changed. In short, we’re in peak spring milk supply, but processors claim demand is already outstripping supply. Lacto Production has seen a fortnight’s orders land in one week, so demand is palpable, and the processors have been stumping up to secure liquid milk, so they argue to steep rise in skim is defensible. (Note to market - that’s what they said last time, withheld product, over-milked the price rise, then endured the collapse in values). 

 

However, ’tis what ’tis for the time being, so further rises almost definitely on the cards in the short term, with the logical extension in production time for blends.

 

Sweet whey is also a tad firmer, up only €10 on the week, but a total of €30 since early April, so 5% higher, certainly not any sign of weakness. Wheat gluten is still critical, with two factories out of production currently. 

 

Not much going on in the background, mineral oils still on the downside, but global soya prices continue to cling on to short term bullishness, ignoring the area increases expected in all production areas. 


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





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



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