
Sweet whey continues its march upwards, albeit slowly with a €10 hike to €910 on the Dutch market, the small rise somewhat diminishing the genuine difficulty securing physical supply, which is invariably offered over the market. Skim milk, on the other hand, remained unchanged, belying the ease of purchase,
Continuing to examine the disparity between the US and European whey markets from last week, we haven’t got much to moan about, but it does support higher European values, at least.

Looking at skim though, it seems we are getting off lightly this side of the pond, as values are raging in the US

The fundamentals I refer to in the headline are actually those of the wider market, as we see the soy complex going in different directions. The red brace brigade have come back to work with a vengeance, pumping soybeans up 10% on pretty much nothing crop-related, but meal and oil have parted company, meal down about 4% since the turn of the year, but soy oil up a stonking 12%.
What has crept up on me, apart from rising prices at the pumps, is the crude oil market, up above $80 a barrel after the heady days in December when it breached the $70 mark. This flows over into biodiesel demand, probably the largest factor in the soy oil hike. But what makes a nonsense of that is that palm oil is down nigh on 20% since early December, where the biodiesel mandate of 50% palm oil (!) kicked in on January 1st. Main reason for that is that exports to India dropped 41% last month, indicating that palm oil had become relatively expensive against soft oils.
But back to the milk powder markets, significantly cheaper palm oil has had zero effect on derivatives like fat-filled whey, where supply is still crippled due to fairly epic demand for calf milk replacers. Same for whey protein concentrate, where the small number of processors are overwhelmed with demand.
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
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