15 October 2020: Unchanged. Again.

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

8 October 2020: Unchanged

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

1 October 2020: Market seesaw returning?

Both whey and skim headline prices remain unchanged this week, as expected, but the pressures now acting on both markets seem to be opposing.

The German ASF outbreak has scuppered exports of pork to China, and that has theoretically thrown whey into oversupply, so it is reasonable for that market to drift lower. The caveat to that could be import demand from SE Asia, which will most probably lead to a level market for October.

However, that export demand from specifically Algeria and SE Asia has already impacted on skim milk, and even though the spot market is posted as unchanged, the forward market does look more bullish than bearish.

Sterling remains rangebound against the euro for obvious reasons of uncertainty, but the strangest headline I saw yesterday was that the Presidential Debate had strengthened the dollar!

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