21 May 2021: Still the market climbs. Alone.

Still the milk powder market climbs, but no one seems to have told it that the proteins markets has (hopefully) topped out.

As the whole soya complex has dipped, led mainly by soya meal being down $50 on old crop futures contracts, palm and coconut oil have carried on up on their own sweet way (sorry!) and milk powders with them. Whey posts another €10 higher and skim milk powder €20, but we’re back to the phoney famine again, with processors and particularly traders keen to supply any amount at the higher levels. But, the greed of the huge hike in milk powder prices has now seemingly run its course and demand is now scaling back significantly, which should undermine the bull market and cause a slide in the near future IF the soya complex does the same.

New crop soybeans (November contract) are $2 a bushel (call it 15%) cheaper than old crop, so favourable weather in the Midwest should pressure the whole complex lower, but not as quickly as to influence the milk powder markets externally. The buyers’ revolt that has started is more likely to pull the market lower. Farmers are switching increasingly to milk for calves (who’d have thought it?) and feed formulators are finding cheaper protein than whey powder so the supply:demand balance has palpably tipped.

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


Recent Posts

See All

13 January 2022: A World Gone Mad

The answer to H G Wells’s conundrum is probably both. The milk powder markets have outdone even their own recent performance with a spectacular leap higher this week; sweet whey up 4% (+€50) and skim

6 January 2022: No end in sight

So much for the New Year slide, demand remains reluctantly buoyant and the supply side is happily poking the market ever skywards. Skim is €60 up from pre-Christmas levels, and now a staggering €400 h

24 December 2021: No Christmas Truce

Although the milk markets continue their independent upward trajectory, a big bounce in the soya complex hasn’t helped defuse the situation. Sweet whey rises another €20, and skim milk €30, 1.7% and 1