It seems the pips have squeaked and the absence of buyers from the market for a second week has left traders unable to carry on their gravy train. Quite surprising, really, given we have seen soyabeans rocket to fresh highs of nearly 16 dollars (up 9%), meal up $40 and for once oil the poor relation, up a modest 2%. Palm oil has been muted too, just off last week’s highs, so the comparatively weak veg oil backdrop is helping hold milk powder processors to account.

Whey is listed unchanged, and skim milk shows a €10 increase. Volumes of both are now freely available for the modest purchase quantities required, but there remains the fear of further increase when buyers scent another hike or are forced into purchase by lead time availability. That is currently sitting at six weeks (from order to delivery), so despite a lack of sales, existing production demand is supporting the market.

So my mantra of last week still holds, heads it’s unchanged, tails it’s up again.

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