The market is raging. Whey is up €60 and skim a full €100, 7% and 5% respectively. Rather than write reams, I’ll list reasons by bullet point:

• Cheese producers for catering have severely scaled back production because of restaurant closure. Whey from mozzarella production is most seriously affected.

• Chinese imports continue at high level

• Liquid milk collections are down by 1.5-2% - cold weather, high feed costs, poor returns

• End users put off Q1 purchases, and have returned for spot supplies, exacerbating the rise

• Demand for animal feed use remains strong, despite dire market prices for pork across Europe

• Middle market traders are ratcheting the spot market higher, outbidding consumers and sitting on long books

• A major supplier of an alternative product (acid whey) is having difficulty sourcing liquid serum

My prediction of mid March before the market will break requires revision, probably into April or beyond, as long as restaurants stay shut and extant animals need feeding.

At least the pound is exploring giddy heights not seen for a six-month or longer, buoyed by the lower than expected rise in the UK jobless figure.

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