The last week has seen sweet whey fall €20, which is a significant 2%, but skim milk powder rise €10, a paltry quarter point higher. At least, that’s the headline Dutch market, as out in the wilds of Brittany offers are broadly unchanged and reasonably available, with the exception of fat-filled product, which is inexplicably firmer (probably controlled by far too few producers …)

Milk powders remain overpriced against the connected basket of commodities, as soya has had a bearish week on the back of improved weather for the US and Canadian harvest, plus a colossal crop forecast for South America. Palm oil has fallen 500 ringitts on the back of market visionary Dorab Mistry’s prediction that Malaysian palm oil will plunge to MYR2500 from today’s 3200, but bear in mind the twin peaks of March and May this year saw MYR7000 breached, so it is already a phenomenal fall.

I can’t see milk powders holding out as a special case to remain insulated from the macroeconomic marketplace that views global recession trumping reduced supply, and all price indexes are falling back.

Except the poor old pound. I have been a surprise winner in the turmoil, not because I run a hedge fund that shorted the pound, but because the pocketful of Albanian Lek I brought back from my holidays is worth considerably more than I paid for them.

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