The Market including fertilizer & fuel
Posted on: 04/03/22
The StoneXMilkprices.com UKMFE (UK Milk Price Equivalent) gives the industry the trades forward view of dairy prices for the next 15 months. It shows the February Nett UKMFE return to a producer was 40.07ppl and the low point is January 2023 at 42.66ppl.
Globally milk production is tight and with confirmed reports today of Red Diesel at £1.10 litre plus and compound fertiliser over £1000 tonne the question is will milk supply increase or will it simply continue to decrease.
A fertilizer manufacturer has decided to shut down one if its plants in Holland because it has decided farmers will not pay the price it will need to sell at. This not only affects fertilizer but also the supply of all the plants ancillary products.
Meanwhile AMPE (48.86ppl) & MCVE (45.81ppl) continue to set new records. (see grid above)
Anyone pinning their hopes on lower milk prices as a result of a Spring flush is in for a shock, particularly given at least one cheese processor who is short of milk is regularly buying spot milk at 45p plus.