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

30 October 2019: Skim continues the unstoppable rise

Skim continues the unstoppable rise, as dire butter prices are pressuring producers to recover margins from skim, which is conveniently underpinned by the intervention strong holders. Skim milk powder is up €50 on feed grade and €20 on edible over the past week. There isn't a stated tonnage published, but reports of further skim purchases by China are doing the rounds, as beef continues to fill the pork void. Re which, Chinese pig production is 50% down, and Philippines by 20% as ASF gains ground there. Even Thailand has reduced pork production, despite how attractive the higher pork prices have become, even though the disease hasn't gained traction there yet.

Whey is up a touch, but again, it seems opportunistic for traders to follow skim sentiment, despite cheese production going full chat and plentiful supply. Having said that, as the skim market is highly unlikely to break before Christmas, a slide in whey seems even more unlikely.

What a pretty pass the Pound has arrived at. What has it come to when an election is called, and the prospect of a unreconstructed Trotskyist as prime minister is viewed by the money markets more favourably than a loony Tory sociopath stuffing the UK economy £70 billion down the lav with his half-arsed ‘Great Brexit Deal'?

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