The tectonic plates of international milk powder markets are shifting again. On the face of it, sweet whey is surprisingly unchanged this week, but skim predictably €20 higher, as was expected. However, the Asian market is possibly changing direction, as buying interest has been stimulated by discounting of whey from the USA. This shouldn't effect European pricing immediately, but would certainly dampen traders' aspirations to hike the market in the autumn. I say would as market info coming out of SE Asia is contradictory as to the USA's autumn sales.

Locally in Europe, off-take of existing contracts has been slow, and more offgrade supplies of particularly skim have been shuffled onto the market, so the expected autumn surge has abated, at least for the time being.

In summary, supply and demand remain roughly in balance, and as the backdrop of the proteins market is gently in decline, the market can be described as quieter than of late.

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