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

Again the market is split in sentiment as well as in direction. Sweet whey is posting unchanged prices on the Dutch market, but there is evidence of wholesale discounting going on under the counter, as processors climb over each other, to catch whatever spot and forward business they can. Skim milk, on the other hand, is still in undersupply and actually posted prices €10 higher this week over last.


Sterling is still surprisingly weak, given that profits have been taken, and with the UK bucking the European trend by reopening the economy, it seems to be contra-trading that’s holding the Pound back.


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

Whilst processors and traders enjoy the sunlit uplands of the market summit they have created, buyers are now sensing blood, and the hoped-for slide has just begun. Feed grade skim milk powder is more freely available at albeit unchanged price levels, but sweet whey has now fallen by €10, so hopefully we’ll see a continuation further into Q2.


Profit-taking has sawn a cent and a half off sterling, which had bounced on lockdown easing as the Eurozone moves further into restrictions.


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

I feel slightly vindicated having stated last week that I thought this hike was running out of steam, as it has at least posted unchanged prices this week, on both whey and skim. The difference this time around is that it has been producers forcing the market to these giddy heights, rather than the usual middle market bandits. Lacto Production have noticed this acutely, and allude to two or three calls a day from producers enquiring whether there is buying interest at higher levels.


It’s a bit like the sausage supply to Jack Jones’ butchers shop in Dad’s Army; officially, there isn’t any whey about, but there is always some under the counter, and now increasingly below the market. That’s a sure-fire signal the whey market will fall, at least.


Before I get too excited about a slide, proteins are still stuck on a high price plateau, and any return of Chinese buying interest will catch the proverbial falling knife, but it looks well overdone as things stand at the moment.


Skim milk is a different story, though, as it is still genuinely hard to source under €2400, so this week’s unchanged market may be just a pause for breath. Having said that, skim is nearing the top of its price bracket of recent years.


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