Whilst there are conflicting signals in the markets, both bearish and bullish, export demand from SE Asia has the whip hand and has lifted the market a modest €10 on both whey and skim this week. And until we see a fundamental change in direction, this trend is likely to continue upwards into December and probably over the year end.

We may see a traditional dip in Q1, if the middle market decides to short-sell, but as skim has now found its equilibrium after the intervention sting of 2018, and whey has bottomed out on this cycle, the corridor of oscillation is hopefully narrower. All deals are off, though, if soya keeps rampaging upwards until S American new crop. And even bigger than that is elephant in the room, no-deal Brexit tariffs of £58/tonne on sweet whey and £610/tonne on calf milk replacers ...

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