FCMP
Prices rise in all three regions
Europe
Slight price increase
The price for FCMP has risen in this past month, but valorization-wise it is actually still a little too low. With milk volumes seasonally increasing there is a bit more interest from processors to produce FCMP without first having secured a sales contract. The buyside generally maintains their hand-to-mouth procurement strategy and the physical price is at the moment EUR 3400-3450 ex works. The geopolitical unrest is creating uncertainty for sure but with trades being generally focused on EU buyers, the market is relatively stable still.
Americas
Further price appreciation
Alongside the rising prices on the GDT the market price for FCMP in Latin America has appreciated to USD 3950-4000 FOB. Brazilian demand is good and with the off season nearby some suppliers in the region are about sold out for May/June delivery. Nevertheless the sell side here appears to be less tight than in New Zealand. With the escalation of the conflict in the Middle East there may appear increased demand from Algeria which can provide good opportunities for sellers in Latin America.
Asia-Pacific
Chinese buyers appear to be securing higher volumes than last year
In comparison with SMP the availability of FCMP in the Asia Pacific region is somewhat better although volumes on offer are bound to diminish towards the end of the season. Inquiries are abundant however, so prices continue to move upward to a level of about USD 4000 FOB. Chinese buyers have the upper hand in the region and volumes already secured by Chinese buyers at this point in the year are significantly higher than last year.
More insights
If you're interested in FCMP, you may also like these topics:
