Although there's some bad news burying going on this tumultuous week, there's good news for milk powder buyers. Quite how far down the slide skim and whey are is anyone's guess, but the whopping 5% drop in skim milk (-€180) suggests it's still falling at 120'/sec/sec, as stores fail to empty and demand falls well short of supply. Sweet whey has been shy to follow, down over 3% to €890, eased by the same dearth of demand as buyers do what buyers do.

Interestingly, milk powders are contra-trading to the veg oils market, as soya and palm oil have had a busy week after Russian drones hit sunflower oil tanks in Mykolaiv, scuppering the export plans out of the Black Sea that are helping world grain markets down. Wheat has been further dampened by the Ukrainian harvest coming into already bursting export silos, as talks about talks for export guarantees rumble on. Soya beans and meal have had an even week, but palm oil is back above 4000MYR, levels last seen in late August, despite burdensome stocks.

Currency is reacting to the resignation with complete ambivalence so far, so prepared are the markets for what became the inevitable.

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