Up we go, on whey at least. The earlier surge in demand from China and all points east has been overlaid by the European middle market buying everything in sight and looking the hike the market by a good €50 by Q1. Despite the Dutch market being posted as unchanged on last week, this is a market on the move, upwards.

There is some evidence that whey supply may be limited going forward, as drying towers are favouring processing skim (higher margins), but it has been plentiful and freely offered going into Q4. Now Christmas cheese production has diminished, this has naturally reduced supply and moved the balance towards demand, a situation that traders will likely exacerbate.

Skim milk remains in equilibrium, with no significant market features, and unchanged on the Dutch feed grade index, although €10 higher on edible grade.

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