Well, finally the middle market has come up with a valid reason for the bull run in skim milk prices that has had both consumers and the Intervention Board scratching their heads; Australia. Yes, the country with 0.33% of the world’s population is attributed with single-handedly surging world SMP prices by upwards of 20%. Genuinely, Lacto have received enquires from Aussie traders, and the crippling drought has seen a natural disaster in terms of livestock numbers, but in a world dairy balance sheet that hasn’t seen any decline in milk availability, this reason is at best questionable.
Sweet whey is down a couple of bob, drifting gently lower as more sellers come out of the woodwork and buyers sniff lower values yet, but caveat emptor for those seeking the bottom.
Speaking of bottoms, the Pound seems to have got its own back, with the giddy heights not seen since the first Brexit vote slide. Presumably the markets are friendly to the repopulation of the middle ground in politics and the loony left and right losing the whip hand, so to say.