No stand-out factors are discernible in the milk powder markets, both whey and skim feed grades are €10 lower over the week. Skim has dropped only €20 in the last five weeks whilst whey has shed €50 over the same period. Looking around the world, the New Zealand market has hiked by 14% for August SMP, so the weakening sentiment isn’t universal. On the bull side, European milk production is lower during summer, but on the bear side, the middle market is freely offering offgrade and overstock material, and they are usually the bellwether for a slump.

The rumour of the Chancellor’s ‘give-away budget’ proved stronger than fact, with the pound soaring (did I say soaring in the pre-Brexit bunglefest?) to €1.1170 before dipping back into the €1.10s post-announcement, but the apparent tumescence of risk appetite returning to the market has seen sterling rise above $1.26 against the safe haven of the dollar.

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