15 August 2019: The market is quite odd at the moment ...

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 g.dunn@blackdiamondcommodities.com

4 views

Recent Posts

See All

The old adage may be that those who can, trade, and those who can’t, write books about trading, but the current situation differs from the facile scenarios above, as demand is plummeting while supply

Perhaps you should sit down to receive this, and I still can’t quite believe I’m writing it, but sweet whey plunged just shy of 10% in one short week, and skim followed, sort of, by losing 2.5%. Whey

Last week’s prediction became this week’s fact; sweet whey has turned north again, following its dearer sister skim milk into higher price territory, whilst the rest of the oils and proteins basket ha