Both sweet whey and skim milk are on the up, the former ratcheted by the middle market, but the latter because of fundamentals.

Sweet whey has posted €20 higher this week, which is now €60 higher than the low at the beginning of August. This smacks of trader manipulation, as there is plentiful physical supply, and US whey and lactose has dominated the Chinese and S E Asian markets lately, so not a bullish signal for the European market.

Skim milk is a different story, though, as the €30 it has put on over the last week makes it €160 dearer than the end of July. This is perhaps the traditional return from vacation panic to stock for autumn calving, but stocks are low and only bits and pieces are available.

If I were a betting man, I would be poorer than I am, but my Q4 view would be to buy the skim and sell the whey.

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