Both sweet whey and skim shed 3% this week, whey down €20, skim €80. The lynchpin is Chinese demand, or rather the continued lack of it. It seems stocks of high priced whey powder bought at much higher price last year is fighting for its place in feed rations, against relatively cheaper grains and proteins. Geopolitics is also at play, as recent Chinese legislation to limit the reliance on and use of imported proteins, which is further distorting the supply:demand equation.

Background markets are pretty flat, soya suspended in midair by the imbalance between northern and southern soya crops in South America. Veg oils drifted by about the same percentage as milk powders, palm oil juggling poor exports against reducing inventories that are weather-related.

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