20 August 2021: Bumping along the bottom, when we thought it was the top?


The sweet whey market has climbed again this week, only by €10, but definitely more buyers than sellers. The background markets, soy complex etc, are all rangebound so no outside influence, just the dynamics of demand building faster than supply feed through.


Taking a look at the long view, whey has peaked at exactly €1000 over the past decade, and bottomed out at €500, but the old world order has been shaken up by the stellar performance of proteins and oils over the past twelve months, so the rule book, if there was ever one, has seemingly been torn up.


Skim milk has put on another €20 this week, and coupled with weaker sterling has edged up CMRs. Liquid milk supply in Europe is still below target, so more upward pressure going into the autumn on an already expensive market is likely.


The long view on skim is interesting, as the peak price that the intervention sting ratcheted out of the market was €2500, and despite prices falling back through H1 2020, we’re already back up there again, with likely more to come.



Graphs courtesy of www.CLAL.it


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

2 views

Recent Posts

See All

14 October 2021: Market's on fire!

However predictable a further price rise in skim milk powder was, a €70 or 2.5% hike in a week is pretty staggering. And that isn’t the whole story, as physical supply has dried up and the market pric

7 October 2021: Heat turned up even higher

The skim milk price is heading into space faster than Captain Kirk, up nearly 2% this week, or €50 per tonne, and it's now impossible to find under €2800, and then only a truck at a time. It's getting

30 September 2021: Market divergence?

The two pillars of the milk powder market seem to be moving apart. Sweet whey is showing a €10 decrease on the Dutch market, but still unchanged in France. The interesting factor is what is happening