It seems we’re not going to get the traditional Q1 slump in prices, on sweet whey at least. It’s up €20, or 2% to €900 in Holland, and remains increasingly hard to find physical supply. Cheese price remains high, and milk is now well over 50 eurocents, so that does support higher whey levels, but the differential with the US has gone off the scale
The background to the US price is difficult to understand, as liquid milk prices don’t match the above rise, and cheese price looks fairly stable, but the fact that the US market is usually under the European one does support the idea that we won’t see anything out of sweet whey anytime soon.
Fortunately, it’s not the same story in skim milk powders, as supplies are plentiful, but difficulty still remains sourcing WPC and gluten. Order books are full, too, production is now out to 20 working days as demand remains brisk for milk replacers and raw materials.
The other thing that’s going on in America has done some real damage to the pound and the euro, as sky high inflation from the putative tariff increases is fuelling dollar purchase. It may be that when the announced tariffs aren’t as draconian as has been trailed, the big sell-off starts and profits are taken, and we see equilibrium return.
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
