Apologies for late transmission, the SPACE show took up nearly all of last week.
The market followed the same trajectory last week, with the same fundamentals; namely, both skim and sweet whey rose, skim because it’s in increasingly short supply, but whey is caught up in the vortex with strangely more sellers than buyers. Sweet whey posts €40 this week, and whey up €20.
As far as skim is concerned, this is worrying, as we come into peak milk production there is usually a lot of stock on warehouse floors, but low milk production through the summer combined with the disappearance of intervention stocks from the market will probably push this market a good deal further.
Sweet whey, on the other hand, is freely offered from all directions, so the rise is suspicious and I don’t see it as a buy signal. The backdrop of the proteins market looks stable, with the soy complex having another quiet week, so soon some of this oversupply will need moving and at worst the market should stabilise.
BDC agri is the UK broker for Lacto Production milk and whey powder products.
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