Greg's Milk Monitor 22 May 2025: Keeping shtum

Apparently, the pretty much universal finger-on-lips sign can be traced back to Ancient Rome and probably before that, and it is certainly being employed by traders and processors alike in the milk processing sector, as there is simply no news to pick up on.

Sweet whey and skim remain unchanged this week, the situation for nearly a month. Feed grade skim is still €20 dearer than the edible stuff and whey is still hard to find at the alleged market price. Lactose and WPC35 remain simply unavailable, with offers over €1100 and €3000 demanded before processors will even pick up the phone. 

Fortunately, balancing that, animal feed demand in the EU has fallen back, and China is still out of the international markets for sweet whey. Milk production in France has been decreasing for the last two months, but the UK situation is quite the reverse, with April production 6% ahead of last year. The UK milk-to-feed price ratio heavily favours maximum production and we have certainly seen CMR demand continue at winter pace.

Looking at skim production versus price, there is no correlation from the below graphs that supports any prediction, but the worryingly dry spring could significantly reduce liquid milk supply going on into the summer 

At least we have seen a reversal in the refined palm market, now as much as €300 below the December peak, but coconut oil continues its stratospheric rise.

Soya oil has taken a recent battering, as the US biofuel mandates that were thought to be a done deal until 2031 are now doubtful, and the US:China trade talks cooling off have pulled meal, beans and oil off a few dollar/cents. The shock UK inflation hike has failed to lift the £:€ but the £:$ enjoys a three year high.

BDC agri is the UK broker for Lacto Production milk and whey powder products.

For further information and prices, contact Greg Dunn on 01206 598657 or greg@bdc-agri.com