Things are starting to slide, as profit-taking has brought the market down significantly on SMP and more modestly on whey. It is interesting that although we have seen €60 out of skim in the last week, and only €20 out of whey, because of the relative price difference between the two, whey has fallen more in percentage terms. Skim has now fallen €80 since the end of January and whey by €50, but this represents an even greater percentage gap, with whey falling over 7%, compared to skim’s 3%.

The principal reason given is coronavirus, but this seems facile given no interruption to European economic activity. A much more likely scenario is that it's payback time for the savage rises in skim prices after the intervention sting of autumn 2018.

Sterling is quite frankly amazing, holding above €1.20 and $1.30, given the chaos caused by the nerdy 12-year-old misfits that Cummings employed to take over the running of the Treasury, but I’m told it was the higher inflation figure that excited currency traders, with the attendant pressure to raise interest rates.

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