24 February 2022


I’ll keep strictly on topic this dark day, other than to mention all overnight futures markets are limit up, as is the safe haven dollar.


Both sweet whey and skim milk powder put on €20 over the week, so are back in step. The interesting factor is that the market is entirely controlled by traders rather than manufacturers at the moment, with freely available product that was purchased from producers up to 6 months ago, with commensurately large margins. When a market gets to this stage, it usually signals a sell-off as soon as the first trader jumps on the down escalator.


Fat filled whey and what gluten remain the only products that are physically short, and still critically so, with part loads being delivered against full load contracts, when available.


Maybe history can teach us something here. In the 2014 annexation of Crimea, the milk powder markets dropped 45% in a month. In 2019, a million yellow-jackets took to the streets in France, protesting about fuel at €1.50/litre, whilst today it has topped nearly €1.70 with no reaction, yet. Whilst the market momentum is currently politically driven rather than supply/demand fundamentals, trying to call the next direction is pointless, but if the political situation stabilises, it seems a fair call to predict the milk powder markets easing in Q2.


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

1 view

Recent Posts

See All

There are definitely two camps at the moment, the producers/traders and the consumers. Here's what the producers reckon: 1. China ending lockdown in June will explode import demand for sweet whey and

It was a good job that it was a soft commodity that hit Sir Isaac Newton on the head, otherwise we may never have learnt this truism. And gravity certainly has acted on milk powder markets over the pa

Arguably, whey powder has already gone over the edge, as it is down €40 on last week, and nigh on 8% lower from the end March highs. Offers from traders vary by as much as €240 over the week, so panic