24 June 2021: Cheap trick?

Both skim and now finally sweet whey show reduced levels on the Dutch markets, but offers of physical material are still scarce. Whey is showing down €30 on the week, the first significant drop since last August, and skim milk posts €20 decrease to go with last week’s €40 drop, making a cumulative fall of circa 2.5%.

This market smacks of trader manipulation, as the sale of one truck cheaply in a quiet market pegs the price down at a new supposed level, with the speculator hoping to see a slide and maximise margin from their short selling at the price peak. There is certainly no wholesale quantity available at theses prices, yet. The UK situation on sweet whey has been skewed for the last two quarters, as the largest UK processor has allegedly been unable to export under the Brexit agreement rules, and has built stocks and heavily discounted prices through the period. However, this seems likely to have been resolved so we should see UK whey prices return to the Dutch axis for Western Europe.

It seems fair to predict a slow decline in real prices, but the rider has to be what happens to the soya complex, and as the last week may have seen soybeans stable and meal decline, soya oil has bounced again, and this bears much more on the milk powder markets.

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

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