Normal service is resumed! The fictitious published market for skim milk has retuned to its unchanged status of two months by falling the €10 it increased by last week. And good old sweet whey is, you guessed, unchanged yet again.
Out in the desperate real world of factory provisioning, sourcing anywhere near these levels is still impossible, but there are signs that processed materials are becoming available again. Fat filled whey and wheat gluten are now more freely available, and even WPC is now offered, but at eye-watering prices. The export ban caused by the foot and mouth outbreak in Germany in January, although contained, continues to squeeze the whey and skim markets, and another outbreak confirmed today in Hungary looks ominous.
The usual bellwether for market direction, downgrades, are asking handsome prices, which is indicative that the headline market is unlikely to break in the next month, and milk blend sales are still extremely buoyant.
In other markets, the Brazilian soya harvest is half way done, but Chicago futures have bounced back to the 10 cent level on little more than contra-trading, so sure is nearly everyone that supply for 2025/6 will heavily outpace demand. Crude oil is down 3%, as toys continue to be thrown out of the pram in Washington, but palm oil is bucking the trend by returning to its highs for the year so far.
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
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