Back to work after an enjoyable platinum jubilee, and markets are all over the place. The lack of milk supply is still forcing the wedge wider between skim and whey, with whey dropping a notional €10, whilst skim increased €50 for the second week running. Shanghai emerging largely from lockdown hasn't stimulated the Chinese import demand that was widely expected, with last year's stock building at far lower prices still sitting in store, and European supply of whey is freely offered.

This is not the case for skim, however, with traders strangling spot supply to lever their books back into the black. Buyers still haven't returned to an admittedly confused market, and despite an easing in coconut oil prices, physical supply is still tight. WPC and wheat gluten remain particularly difficult to source. Unless there is a global soft commodity slide, I can't see the milk powder market falling in the near future.

The rest of the oil commodity basket is steady, with soybeans and soya oil holding firm while meal dipped $30, and palm oil drifting lower, as Indonesia's return to export isn't that significant and Malaysia is suffering a plantation labour shortage similar to the lack of bank holiday air traffic controllers.

One surprising, but useless fact: Gold, formerly the ultimate safe haven in times of global tumult, has actually lost 2% year-on-year. The mighty greenback has been the refuge so far in the current crisis, firming against the euro, and leaving the pound in the dumpster.

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