This morning finds me in Poldark country, west west Cornwall, and feeling like Jud Paynter, muttering about a completely unfair market. It’s basically lost all comprehensible reason and is raging higher, up a whopping 11% (+€80) on sweet whey and a slightly more acceptable 2% (+€50) on skim milk powder.

The plain fact is that there is no shortage of offers of physical material, just sellers riding the wave of higher prices, and these two factors rarely go hand in hand. It has been put to me that a combination of the following reasons have supported the market, none of which I think are valid enough to support this trader raid:

• Factory maintenance

• Less cheese production

• Liquid SWP directed to whey protein concentrate instead of powder

• Milk directed to butter production instead of cheese

Soya has taken a breather, with oil now up 8% on mid-August lows, and palm oil has wiped out all the losses in August with news that the already bonkers plan to incorporate 40% of palm oil into Indonesian biodiesel next year has been increased to 50%. 

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