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10 August 2023: Middle market blues

The seemingly insulated milk powder market carries on its sideways drift this week, whilst larger issues dominate proteins and both sorts of oil.

Sweet whey posts a modest 2% increase, but that’s only up €10, while skim is unchanged. Reports from the markets have warehouses still full, and masses of off-grades being hawked by increasingly desperate middle market traders. There’s a difference of prediction between Lacto Production and me, in that I’m still wedded to the opinion that everyone’s still on their holidays and September will see the traditional hike, especially given the historically low values, while Lacto see the price plateau continue through September (Bookmakers' Note: put your money on Lacto).

Outside our oversupplied market bubble, Midwest rains have seen both beans and meal drift lower over the week, but soy oil has remained pretty much unchanged, propped up by crude oil raging higher on OPEC concerns. Both Saudi and Russia have threatened to continue withholding crude oil into September and beyond, forcing prices 13% higher over the last month, now tipping $85. Saudi Arabia may be able to pull it off, but a cash-strapped Putin is likely to break ranks sooner.

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

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