Up we go? Sweet whey posted an impressive 4% gain this week, up €40, on top of the €30 rise from the low of €900 of mid August. Skim milk followed the upward trend, chalking up another €50 (+1.4%), but the post-holiday rush to cover hasn’t kicked in universally yet, apart from brisk buying in Eastern Europe.

The below graph doesn’t yet show the uptick, but is interesting in that the August graph is identical for the last two years, and both 2020 and 2021 experienced the autumn hike. Chaos theorists (remember them?) might argue that there is no pattern, and whilst physical supply is ample, it has to be said that it is processors and traders who are urging the market higher.

Supporting indices signal mixed messages, as palm oil is on the downtrend, as burdensome stocks are added to by peak production months in SE Asia, whilst soya oil is the current champion of the soy complex, some 5% higher this week whilst beans lost a dollar and meal also drifted lower. Global economic woes weigh on the demand side of the scales, although China has ramped up soya imports ahead of autumn festivals.

Currency is worth a mention, as the dollar:euro waltz around parity, and the poor old pound is bewildered by the desperate promises of the two continuity Borises and languishes at what is hopefully the lower end of the current cycle.

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