25 March 2021: A game of two halves - and it's half time?

I feel slightly vindicated having stated last week that I thought this hike was running out of steam, as it has at least posted unchanged prices this week, on both whey and skim. The difference this time around is that it has been producers forcing the market to these giddy heights, rather than the usual middle market bandits. Lacto Production have noticed this acutely, and allude to two or three calls a day from producers enquiring whether there is buying interest at higher levels.

It’s a bit like the sausage supply to Jack Jones’ butchers shop in Dad’s Army; officially, there isn’t any whey about, but there is always some under the counter, and now increasingly below the market. That’s a sure-fire signal the whey market will fall, at least.

Before I get too excited about a slide, proteins are still stuck on a high price plateau, and any return of Chinese buying interest will catch the proverbial falling knife, but it looks well overdone as things stand at the moment.

Skim milk is a different story, though, as it is still genuinely hard to source under €2400, so this week’s unchanged market may be just a pause for breath. Having said that, skim is nearing the top of its price bracket of recent years.

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

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