Greg's Milk Monitor 21 March 2025: Overdone?

Dutch prices for skim show a €20 decrease and leave sweet whey unchanged, and no change on real provisioning values, still above these levels.

However, there is a wind of change blowing, in that the predicted spring slide looks more likely to happen now demand should be easing. Having said that, demand remains brisk, with orders still extended to 5 weeks delivery, but refined palm fat and hydrolysed wheat gluten are both finally starting to fall. 

It is processors who are trying to hang on to unchanged price levels for both skim and whey, whilst perhaps traders will try to force some downward arbitrage in the coming weeks. 

BDC agri is the UK broker for Lacto Production milk and whey powder products.

For further information and prices, contact Greg Dunn on 01206 598657 or greg@bdc-agri.com

Greg's Milk Monitor 14 March 2025: One night in Bangkok

Well, it was two actually, but only one day at VIV Asia, which lived up to its reputation as the Eurotier of the East.

We see sweet whey down €10 and skim milk a surprising -€20 this week, but supply has started to ease. That in itself is surprising, as CMR demand remains brisk, but we should see a slowdown as we head further into Q2

Talking the market whilst at VIV, it seems that US feed grade whey has been undercutting European offers into Asia, despite reported domestic US prices being far in excess of EU pricing. That might be what is pulling Dutch prices off the boil. Other ingredients are also easing in supply terms, if not pricing.

BDC agri is the UK broker for Lacto Production milk and whey powder products.

For further information and prices, contact Greg Dunn on 01206 598657 or greg@bdc-agri.com

Greg's Milk Monitor 7 March 2025: Things are not quite what they seem

Normal service is resumed! The fictitious published market for skim milk has retuned to its unchanged status of two months by falling the €10 it increased by last week. And good old sweet whey is, you guessed, unchanged yet again. 

Out in the desperate real world of factory provisioning, sourcing anywhere near these levels is still impossible, but there are signs that processed materials are becoming available again. Fat filled whey and wheat gluten are now more freely available, and even WPC is now offered, but at eye-watering prices. The export ban caused by the foot and mouth outbreak in Germany in January, although contained, continues to squeeze the whey and skim markets, and another outbreak confirmed today in Hungary looks ominous.

The usual bellwether for market direction, downgrades, are asking handsome prices, which is indicative that the headline market is unlikely to break in the next month, and milk blend sales are still extremely buoyant. 

In other markets, the Brazilian soya harvest is half way done, but Chicago futures have bounced back to the 10 cent level on little more than contra-trading, so sure is nearly everyone that supply for 2025/6 will heavily outpace demand. Crude oil is down 3%, as toys continue to be thrown out of the pram in Washington, but palm oil is bucking the trend by returning to its highs for the year so far. 

BDC agri is the UK broker for Lacto Production milk and whey powder products.

For further information and prices, contact Greg Dunn on 01206 598657 or greg@bdc-agri.com