This week was an action replay of the week previous, as sweet whey stood still while skim milk shed another 2%. Whey at €640 is €80 under the cost of production in a state-of-the-art facility, which would be way higher for most of the ageing dryers throughout the industry. But stocks just aren't moving, and whilst the gloomiest predictions reckon September could be the earliest the market will return to profit, some say the turnaround will come in June.

If we look at protein value, whey costs €640 with 11% protein, which extrapolates to €1920 for the 33% protein in skim milk, which is €200 under the current skim price, so if that metric works, and it rarely does, that could be the bottom for skim. What is staggering is looking back exactly one year when skim peaked at €4200, to see it now halved in price and expecting further losses.

Both soya and palm oil shrugged off largely bearish factors to remain broadly unchanged over the week.

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