The market is quite odd at the moment because it is so even, but only from the buyers' perspective. Maybe it's still the tail-end of holiday season, but very few buyers are in the market, and the only action is in the spot position. Buyers believe both legs of the milk powder market will come down, but sellers know different, and while they're tempting cheeky bids on whey, they've put their line in the sand on skim and won't budge until they see higher bids, even if it takes to Christmas.
Lacto Production's view is that we'll see traded volume of skim rise by the end of the month, as the realities of autumn calving force the CMR sector into buying Q4, but that the decimation of a good part of the global pig herd could see EU whey prices down €100-plus. So I'll give Boris his due, he was right about the whey for No Deal Brexit Mars Bars. But don't shoot me if that slide doesn't come about, and 'events' (other than currency) send the whole shebang skywards.
Quite how sterling has recovered a cent against the euro on the news that Jeremy Corbyn has recommended himself as a 'caretaker Prime Minister' beggars belief, but that cheap shot is underlaid by the barely concealed squeals of anguish from No.10 that their No Deal bargaining chip is pretty well scuppered, however many soundbites the attack dogs of ERG get on tape. Barring successful proroguing, perhaps we've seen sterling bottom out?
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 firstname.lastname@example.org