20 November 2019: Skim doubles in price in 18 months

There is only so much one can write about skim milk powder in this compromised market, where two long holders continue to hold it to ransom, upping their demand between €30 and €50 per week. This week they decided to only make it €40 higher, and if and when an EU Commission investigation into a) why they sold the intervention stock so cheap, and b) whether this seeming cartel is totally illegal, it will be far too late to mend the damage wrought.

Traders are trying to ratchet whey prices higher on the back of skim, but supplies are plentiful and a cartel impossible, so we may see prices drift higher, and most probably won’t see a break in the market this side of the end of Q1, so covering that period now seems a reasonable bet.

Sterling remains surprisingly stable, as the acreage of election magic money tree planting has now reached forest proportions.

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

13 November 2019: Traders milking it

A short paragraph on skim milk powder is that it is €50 higher, the only possible fundamental reason being a 0.3% decrease in production, but why the 2.13% increase in skim price? Traders milking it, that's why. Every week, Lacto Production feel it has peaked, so it's Groundhog Week yet again.

At least whey has flatlined on price, as supplies are plentiful and it is only traders trying to hike the market in the wake of SMP.

Currency traders have identified Nigel Farage as the problem, with the pound bouncing two cents on his U turn. Unusual to have a rising pound during an election campaign as it is, there's probably many a twist and turn to come before 12th December.

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

6 November 2019: Sterling continues to amaze

Skim and whey moved up in tandem this week, both by €20 to €30. Skim milk powder is now officially 50% higher than a year ago, when the intervention sting netted the traders a base value of €1600, as they are now achieving €2450. There may be some relief by year end, as producers traditionally release larger volumes of stock to square their books, but this is not a traditional market.

The rise in whey is baseless, as supply is readily available with Christmas cheese production is in full swing.

Sterling continues to amaze, holding on to its highest values for a long while, during an election period that is traditionally volatile. But this is not a traditional market.

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