Not much change to report, other than a gentle drift higher.

Whey is still in short supply, as the big switch-on in food processing hasn't happened yet, and this has added perhaps the surprisingly modest increase of €10 to the Dutch and French markets. This could easily fall when full cheese production is in full swing, but the decline is likely to be slow when it comes, and one can't rule out further increases in the near position.

Skim is equally hard to find under €2000, despite the Dutch market price quoted for feed grade being €1800 (but interestingly an increase of €20 over last week's, so there is recognition that demand is exceeding supply). However, the inevitability of milk prices dropping further across Europe must surely weigh on skim prices later in the summer, but for now the stand-off between processors standing firm and consumers having to pay up continues.

Sterling has surprised the markets by putting on a cent in the past couple of days, despite the backdrop of the gloomy BoE forecast of the deepest depression since the South Sea Bubble, exactly 300 years ago. But given every economy in the G20 and beyond is in an unprecedented muddle, currency swings are hopefully going to be modest until much deeper analysis of the new world financial order is made.

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