31 August 2023: Middle market moves

Guess who’s back from their ‘olidays? And they’ve got their buying boots on, so long positions are being built on sweet whey. Even skim milk’s getting in on the action, as both markets lifted this week.

Sweet whey rose €30, which given the low price represents nearly a 6% hike, whilst skim’s €20 rise only jumps 1%. There is no fundamental change in supply or demand, and still an unusually large offering of off-grades, but the middle market is definitely anticipating hiking the autumn market, which is no doubt delighting pretty desperate producers.

Background markets are steady to firm, with the soya complex broadly unchanged and palm oil slightly firmer. Soya crop conditions haven’t been battered as badly by hot, dry weather as predicted, but buying demand has remained brisk. Brent crude remains north side of $80, so veg oil remains supported from food/feed and biodiesel.

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

14 August 2023: Cash & Carry

Whilst stocks of sweet whey still seem abundant, up with lower prices long holders will not put. In other words, processors and traders alike have taken all the losses they’re prepared to, so will likely tough it out, pay the finance and rent, and sit on long books until the market rises high enough to get them out of jail. The question is, how long? There has been a palpable change in the mindset of sellers over the last week though, with quiet discounts under the market being withdrawn.

Whey posted unchanged again this week, whilst skim milk shed nigh on 2%, now below €2100. Looking at the graph below, skim is at three year lows, and hasn’t got much lower than this since the long march north that started after Intervention was emptied in 2018.

Drier weather in the Midwest has turned soya around a bit, but mostly meal is affected, up $20 or so, with soy oil about even over the week. Palm has followed suit, with fairly brisk exports to India, and also China promising to buy more.

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

18 August 2023: Groundhog Day

The market is still stuck in holiday season, there’s still a lot of stock about, and little is changing whilst brisk trade carries on. Whey is unchanged again this week, ample offers are meeting increasing demand with significant supplies still left over. Skim on the other hand has fallen €40, influenced by off-grades still driving the market. China has bought significant quantities, but from the US market which is still €100 cheaper that the EU.

Soya has had a level week, unchanged pretty much on the beans, down $20 on meal and up about 3% on oil. Crude oil has fallen back this week, back to $80 as the faltering Chinese economy outweighed production cutbacks.

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