The milk powder market is about as organised as British politics at the moment.
Taking skim milk powder first, 80,000 tonnes have been sold out of intervention during the last week, at prices between €1554 and €1676 per tonne, taking the total sold in the last three months to near 200,000 tonnes, and leaving only 22,200 tonnes left in EU stores.
Whilst EU accountants are grateful for the extra bunce over the €1300 minimum sale price, the huge question remains, where is the demand for this extra tonnage, and how long can the market defy gravity and collapse?
Whey powder has ticked up another €10 and nothing else in the milk powder blender’s arsenal of raw materials gets any cheaper, so the hand-to-mouth buying this market backdrop generally dictates could well sustain the continued rise for some weeks yet …
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