The current milk powder market is in a vacuum, where no purchases or sales have happened, and prices are where traders think they might be. The Chinese market for sweet whey powder is silent, even Algeria too, where exports are usually quite brisk.

On the face of it, the Dutch market has dropped €20, or 2% in the last week, and skim milk fell by a surprising €30 (1.25%), and although the soya complex has remained relatively rangebound recently, the other components of CMRs (coconut oil, hydrolysed gluten and dextrose) remain extremely difficult to source and eye-wateringly expensive.

So where do we go from here? Some traders reckon we’ll see a few more bob out of both markets, but the return from summer holidays usually turns the autumn market significantly north, so buying forward on a gently decreasing market generally averages out better than chasing a sharply rising market.

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