10 May 2024: Devastation in Rio Grande do Sul

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

2 May 2024: All about the oil

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

Pig & Poultry Fair 2024

Preparations are full-on at BDC agri HQ, getting ready for the biennial Pig & Poultry Fair at the NEC, Birmingham on 15-16 May, where we’re promoting PIDOLin PCa for layers, C4A-L for turkeys and Lacto Production milk powders.

Greg and the BDC agri team will be on Stand 342 in Hall 10 - near the Innovation Theatre - where you can be sure of a warm welcome. So do come along and say 'hello', take the weight off your feet and enjoy some refreshments with us.

We look forward to seeing you there!

For directions and further information, visit the Pig & Poultry Fair website.