18 June 2020: More sellers than buyers

I’m glad to say the milk powder market is taking a post-lockdown breather. It seems producers and traders have both been holding back material and are now releasing it into a market that is already largely covered.

Both whey and skim milk supplies are now freely offered, so prices of feed grade have dipped between €10 and €20 over the last week, Normally, this time of year sees cheesemaking going gangbusters and a shortage of SMP, but in the topsy turvy world we now witness, as Henry Ford famously opined, "history is bunk”. It seems the demand from SE Asia is now fulfilled with stock left over, so a gentle drift lower seems more likely than a collapse.

Sterling is back on life support this morning, below €1.11, after UK inflation fell to a four year low, and the spectre of negative interest rates loom larger, ahead of the BoE announcement today.

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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