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29 June 2023: Milk powder mountain still visible

The tectonic plates of supply and demand are continuing to push up where they join, with the stockpile not tangibly reducing, despite brisk supply and demand.

Sweet whey reversed half of last week’s slump, up €20, and skim milk is reported unchanged at €2190. Not much to say on the macro ingredients, but there are decreases in other inputs, namely wheat gluten and palm fats. This is the result of too few processors in the marketplace hanging on to the highs in skim and whey and pricing their product unfavourably in least-cost formulation, resulting in full warehouses and expensive inventories. No doubt the revenge will come if skim and whey track higher in the autumn.

The soy complex is just that, and difficult to interpret. Things have obviously got more moist in the Midwest, as soya beans are down quite sharply this week, and meal has plunged also, leaving soy oil unjustifiably 10% higher. This is odd, given crude oil is down again, now sub $70 a barrel, so no support from biofuel, and palm oil is riding soy oil’s coattails on expectations that India will be dumping soy and sunflower oil in favour of palm.

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


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