1 September 2021: Interesting times

The tectonic plates of international milk powder markets are shifting again. On the face of it, sweet whey is surprisingly unchanged this week, but skim predictably €20 higher, as was expected. However, the Asian market is possibly changing direction, as buying interest has been stimulated by discounting of whey from the USA. This shouldn't effect European pricing immediately, but would certainly dampen traders' aspirations to hike the market in the autumn. I say would as market info coming out of SE Asia is contradictory as to the USA's autumn sales.

Locally in Europe, off-take of existing contracts has been slow, and more offgrade supplies of particularly skim have been shuffled onto the market, so the expected autumn surge has abated, at least for the time being.

In summary, supply and demand remain roughly in balance, and as the backdrop of the proteins market is gently in decline, the market can be described as quieter than of late.

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

26 August 2021: SE Asia reawakens

As predicted, returning holidaymakers found themselves short of September purchases and have piled into the market, which has seen both skim and whey rise €20 this week.

Sweet whey is still more easily sourced than skim, which remains considerably tighter for stocks, but one significant snippet of news that SE Asia, excluding China, has returned with heavy purchasing of sweet whey. This demand has been met by European traders with long books, but has certainly contributed to the jump in values.

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

20 August 2021: Bumping along the bottom, when we thought it was the top?

The sweet whey market has climbed again this week, only by €10, but definitely more buyers than sellers. The background markets, soy complex etc, are all rangebound so no outside influence, just the dynamics of demand building faster than supply feed through.

Taking a look at the long view, whey has peaked at exactly €1000 over the past decade, and bottomed out at €500, but the old world order has been shaken up by the stellar performance of proteins and oils over the past twelve months, so the rule book, if there was ever one, has seemingly been torn up.

Skim milk has put on another €20 this week, and coupled with weaker sterling has edged up CMRs. Liquid milk supply in Europe is still below target, so more upward pressure going into the autumn on an already expensive market is likely.

The long view on skim is interesting, as the peak price that the intervention sting ratcheted out of the market was €2500, and despite prices falling back through H1 2020, we’re already back up there again, with likely more to come.

Graphs courtesy of www.CLAL.it

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