However predictable a further price rise in skim milk powder was, a €70 or 2.5% hike in a week is pretty staggering. And that isn’t the whole story, as physical supply has dried up and the market price if one can find it is over €100 higher than the published price of €2760. Processors are making cheese like there’s no tomorrow and snaffling most of the milk in an undersupplied market, not that much of the price rise seems to be making it back to the farmer yet.

And that leads into sweet whey, which should frankly be burdensome and continue falling, but those clever middle market chaps have hiked prices €30 since last week, a 3% rise, and there’s masses about. Another thing that’s impossible to justify is whey protein concentrate jumping €200 in a week, and that comes from cheese production.

The backdrop of vegetable proteins and oils is quiet, with soybeans dipping below $12 (recent high of $15), meal about 25% off the highs and soya oil pretty stable, so no influence there. Skim is nigh on impossible to find, possibly because processors are hiding it, so will probably be ratcheted over €3000 and possibly then some, but with ample sweet whey supplies and no export interest reported from SE Asia (which has been sated by US supply recently), it’s odds on to fall back in Q4.

The pound seems to like Boris going on holiday while nasty reports are landing left, right and centre, the only thing that is taking a little of the edge off these horrible price rises.

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