4 December 2019: Unchanged!

I have waited nearly a year to say this, but ………….. skim milk powder is UNCHANGED!

At least the Dutch market is posting unchanged values for this week for feed grade, but notably not for edible SMP, which is up the predictable €30 on the week. It is difficult to read the market this early, but I guess the most likely outcome will be that normal service will resume next week, and the upward march will continue. Appealing as it is that we’ve seen peak skim, I think it is likely to be a plateau at best, as the licensed bandits holding the ex-intervention stock probably won’t drop their prices until forced to by producers discounting, and they’re as happy as Larry to keep the market pumped up.

Whey, on the other hand, hasn’t heard yet, and has added another speculative €10 to its self-inflated importance, whilst supply abounds and global demand is stymied by ASF. Whilst it is unlikely to happen soon, of the two major milk powder markets, whey has more reason to fall than skim milk.

The Pound has put on a sparkling display this morning, up above €1.18 and $1.30. Matt has an amusing take in his Daily Telegraph cartoon, where the Russians are accusing Trump for interfering in their UK election ...

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