9 July 2020: Market drifting lower, slowly

No stand-out factors are discernible in the milk powder markets, both whey and skim feed grades are €10 lower over the week. Skim has dropped only €20 in the last five weeks whilst whey has shed €50 over the same period. Looking around the world, the New Zealand market has hiked by 14% for August SMP, so the weakening sentiment isn’t universal. On the bull side, European milk production is lower during summer, but on the bear side, the middle market is freely offering offgrade and overstock material, and they are usually the bellwether for a slump.

The rumour of the Chancellor’s ‘give-away budget’ proved stronger than fact, with the pound soaring (did I say soaring in the pre-Brexit bunglefest?) to €1.1170 before dipping back into the €1.10s post-announcement, but the apparent tumescence of risk appetite returning to the market has seen sterling rise above $1.26 against the safe haven of the dollar.

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


Recent Posts

See All

14 October 2021: Market's on fire!

However predictable a further price rise in skim milk powder was, a €70 or 2.5% hike in a week is pretty staggering. And that isn’t the whole story, as physical supply has dried up and the market pric

7 October 2021: Heat turned up even higher

The skim milk price is heading into space faster than Captain Kirk, up nearly 2% this week, or €50 per tonne, and it's now impossible to find under €2800, and then only a truck at a time. It's getting

30 September 2021: Market divergence?

The two pillars of the milk powder market seem to be moving apart. Sweet whey is showing a €10 decrease on the Dutch market, but still unchanged in France. The interesting factor is what is happening