Probably the biggest feature this week is sterling bombing out against the euro, now Daily Express readers appear to be controlling negotiations with Michel Barnier, and the currency markets have backed who they expect to win. It’s been a quiet week on the milk powders, with whey unchanged, but skim milk still trending north.

Put simply, whey supply is broadly in balance with demand, but the shortage of derivatives such as lactose and permeate continues. Skim, on the other hand, seems to be following an incline underpinned by continuing undersupply of raw milk that won’t go back into balance until October’s autumn calving glut kicks in.

There has been large scale buying this week, which has pushed values higher by €20 (1%) and this trend could easily continue for the next month or so. It doesn’t have the feeling of a runaway train, and when it does peak, it’ll probably plateau rather than dive. The main thing that may derail that supply:demand is a return to Europe-wide lockdown as temperatures tumble to optimum Covid infection, and the second wave reduces demand dramatically from the catering sector.

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