1 October 2020: Market seesaw returning?

Both whey and skim headline prices remain unchanged this week, as expected, but the pressures now acting on both markets seem to be opposing.

The German ASF outbreak has scuppered exports of pork to China, and that has theoretically thrown whey into oversupply, so it is reasonable for that market to drift lower. The caveat to that could be import demand from SE Asia, which will most probably lead to a level market for October.

However, that export demand from specifically Algeria and SE Asia has already impacted on skim milk, and even though the spot market is posted as unchanged, the forward market does look more bullish than bearish.

Sterling remains rangebound against the euro for obvious reasons of uncertainty, but the strangest headline I saw yesterday was that the Presidential Debate had strengthened the dollar!

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


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