22 July 2020: Same old, same old

The market is moving swiftly sideways, the only change being the massing ranks of sellers facing buyers who have fled the field. Whey is posted unchanged for the entirety of July, but skim milk has posted another €10 increase, although seller competition leaves the market unchanged. The concentrated proteins of whey and skim are plain unavailable, as the towers concentrate on skim and whey drying, and lactose remains in short supply and overvalued for feed use.

Sterling remains rangebound between €1.0950 an €1.11, but has put in a six week high against the dollar, at $1.27+, as risk appetite for dodgy currencies apparently increases.

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

16 July 2020: More sellers than buyers

It’s a largely unchanged picture to report this week, with only feed grade skim milk in the Netherlands posting a suspicious €20 hike.

Looking back over recent months, the only seismic change to fundamentals has been the acceptance of whey derivatives for edible use in China, and this has affected the pricing structure of feed grade whey. The supply v demand balance is tilted to the upside as the overall supply of whey and derivatives for feed is reduced. However, looking at the immediate supply situation, there is no lack of sellers, which discourages buyers and the market could easily take a step-change downwards.

Sterling continues to suffer the predictable blows of dire economic data overlaid with the questionable wisdom of continuing to Get Brexit Done, now the Treasury has been replaced with ‘Cummings’ Misfits’.

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

9 July 2020: Market drifting lower, slowly

No stand-out factors are discernible in the milk powder markets, both whey and skim feed grades are €10 lower over the week. Skim has dropped only €20 in the last five weeks whilst whey has shed €50 over the same period. Looking around the world, the New Zealand market has hiked by 14% for August SMP, so the weakening sentiment isn’t universal. On the bull side, European milk production is lower during summer, but on the bear side, the middle market is freely offering offgrade and overstock material, and they are usually the bellwether for a slump.

The rumour of the Chancellor’s ‘give-away budget’ proved stronger than fact, with the pound soaring (did I say soaring in the pre-Brexit bunglefest?) to €1.1170 before dipping back into the €1.10s post-announcement, but the apparent tumescence of risk appetite returning to the market has seen sterling rise above $1.26 against the safe haven of 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