16 June 2022: Ploughing its own furrow

Last week’s prediction became this week’s fact; sweet whey has turned north again, following its dearer sister skim milk into higher price territory, whilst the rest of the oils and proteins basket had a quiet to lower week.

Traders’ love of arbitrage probably hiked sweet whey, as offers at lower money suddenly dried up and processors sniff higher prices and withhold stock.

Statistics this week are sweet whey up €20 (+1.5%), skim milk rises €50 (+1.3%), but soyabeans and soya oil both eased a good 5%, with only meal posting pretty much unchanged levels. Palm is an interesting story, as the Indonesian export ban in April has bit them in the bum, as stocks have built to the degree that they’ve slashed export taxes in order to get some tank space. The result is the palm market is down a good 20% from the early May highs, and looks as though it may fall further in the short term.

Chronic supply issues have eased on derivative products such as wheat gluten and fat filled whey, but not one pfennig has come out of prices, which are still at record highs.

Today’s BoE increase of 0.25% on base rate interest has saved the bacon of sterling, currently trading 2 cents higher against the euro.

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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