Greg's Milk Monitor 3 April 2025: Tariffic or Tariffying?

Sweet Whey - €10

Skim Milk unchanged

Following last evening’s presidential proclamation on tariffs, and trying to predict the effect on global milk powders, on the face of it, it doesn’t look bullish. Just taking whey, the cumulative 10% global tariff plus 35% Chinese tariff increase on imports into the US is likely to be met with a robust and equal response, and thus put US whey export prices so far out of court that the EU will be the market of first resort. This arguably could be bullish for our home markets. However, the domestic US price has been going through the floor during Q1, so the tariff news is unlikely to slow that decline down any.

The markets' knee-jerk kicked off about 2% down when the bell rang this morning, but are coming off the lows now as profit taking by day traders kicks in. Sterling and euro rates against the dollar soared, but inexplicably the pound has lost a cent to the euro during today’s trade.

Regarding milk powder blends, no fresh news in the market, other than off grades are starting to be offered, usually a sign that processors reckon the market’s overdone. Refined palm oil is stable at just below €1600, but the disease problems affecting the coconut palm are continuing to send prices into the stratosphere.

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