top of page

6 May 2022: Edge of the precipice?

Arguably, whey powder has already gone over the edge, as it is down €40 on last week, and nigh on 8% lower from the end March highs. Offers from traders vary by as much as €240 over the week, so panicsville looks like it's setting in. It's a different story for skim milk, though, as it is resolutely unchanged this week after last week's surprise drop. Offers aren't burdensome, but are adequate to meet muted buyer demand. What's holding the market up is not only the Indonesian RBD palm olein export ban, but the more worrying ban on fat filled whey, as Indonesia accounts for 60% of world supply.

World milk powder markets are in retreat, USA is falling and the Global Dairy Trade index shows a cumulative 8.5% drop in the last fortnight. Background markets are weaker, soya beans, meal and oil all shedding circa 5%, and palm oil likewise, despite the above.

My view is that we're looking at the beginnings of a large correction at best, rather than a market collapse, as the global food balance sheet isn't long, and the poorer South American soya harvest and delayed planting in the US is unlikely to sustain the index markets' fall.

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

1 view

Recent Posts

See All

Another week of gently lifting powder markets, whey up 2.5% at €820 and skim only €10 higher. Talk amongst the milk powder community in this week’s VIV MEA in Abu Dhabi reckons the Dutch and Eastern E

Well, that collapse didn’t last long, one week to be precise. Whey is unchanged at €800, and SMP a paltry €10 lower. No reliable intelligence as to why, no withdrawal of offers or signal of dwindling

I feel a bit like Robin from ‘Ghosts’, trying to work out where things are going at the moment. After the arch-manipulation by the Dutch whey market, it has suddenly halted and looked behind to see if

bottom of page