It looks like the traders have won this round, and as much as the processors don’t like it, they are now offering quantities of both whey and skim at lower levels. Skim is down a whopping €60 in Holland, but only €15 in Germany, highlighting the patchy nature or regional pricing and physical supply. Whey has only shed €20 over the last week, but much greater quantities are being thrown at the market by processors who formerly swore they were out of stock…
Buying activity by end users has been pretty much zilch over the last week, and sellers are finally responding.
However, soya oil has now retraced half the losses seen in June, and as buyers have exited the market anticipating greater falls in milk powder, we could easily see a turnaround in mid July, with a firm veg oil market, buyers returning and traders hiking the market higher.
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 email@example.com