Uralkali, the Moscow-based potash company, has forecasted a significant decline in global demand for potash for the full year 2015. As a result of lower grain prices, currency headwinds and a large buildup of stock in some countries, global demand is expected to fall from 63m tonnes in 2014 to 58m tonnes in 2015.

In March this year, Fonterra acquired a 19% stake in the Chinese baby food and infant formula maker Beingmate at a cost of €472m or €2.50 per share. In the wake of this week’s stock market crash in China, shares in Beingmate are down 34%, reducing the value of Fonterra’s stake to €317m – a loss of more than €150m.

EU milk powder exports to Algeria, its most important market accounting for 11% of all WMP and SMP exports in 2014, have declined significantly over the first half of 2015. WMP exports to Algeria are down 32%, while SMP exports are back almost 60% as Algeria awards more of its milk powder tenders to Fonterra.

Earlier this month, the USDA startled markets after it unexpectedly raised its forecast for US corn yields to 168.8 bushels per acre. However, farmer groups in some of the key maize-growing regions of the US do not share the same view, citing patchy crops and blank cobs, coupled with increased rainfall for June and July.