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4 April 2024: Dead cat bounce or a genuine bottom?

An interesting week for milk powders, as we see sweet whey unchanged but skim milk bouncing €50 (+2.3%). The word on the wires carries on from last week, in that traders are buying, and have largely ceased offering, which has brought buyers out of retirement en masse, so a genuine sea-change in sentiment.

Outside markets are definitely playing a part, led by crude oil, which is approaching $90 a barrel. This is classic 'sell on rumour, buy on fact’ territory, as the rise is predicated on OPEC+ agreeing to cut supply further, ignoring the fact that the biggest inventory of them all is seeing stocks rising sharply.

The rise in crude oil has got vegoils excited, as soy oil has risen a couple of percent whilst beans and meal have decreased, but palm oil has put on over 12% over the last month. It is like an old western movie, someone shouted ‘Indians’ and the wagons swiftly pulled into a circle and up went the barricades. Indian palm oil imports have actually decreased to a ten month low, as sunflower oil has offered better value, but the betting is that the upcoming Eid al-Fitr festival will revive demand and sustain the higher levels.

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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