FCMP
The tension rises with the start of the Southern hemisphere production season
Europe
Quiet market
The EU market tightened a little when heat stress diminished milk volume as a whole, leaving less excess milk to be processed into FCMP. This gave the local price a small boost to the current level of EUR 3400-3500 ex works. Sellers are reluctant to offer further forward as they are uncertain about the milk volumes that will become available in the shoulder of the season. Production on demand remains the dominant market strategy.
Americas
Supply is stronger than demand
The sentiment in the FCMP market in Latam has weakened further. The sell side has unsold volumes for August, the sales books going forward are largely empty and the production volumes are strong and show no signs of weakening as the season enrolls. The price has been easing down to USD 3400-3500 FOB. Demand from Brazil is steady but not spectacular and there have still been no indications of private parties in Algeria receiving import licenses. This leaves the world market very well supplied with New Zealand gearing up for a good season as well. To sum it all up: further price decline is on the horizon.
Asia-Pacific
Tense market
The global FCMP market is dominated by production out of Oceania. At the moment this market feels tense as it seems to be engaged in a stare down contest between buyers and sellers to see who blinks first. At the start of the Oceania season buyers generally anticipate increasing availability and declining prices. This year Fonterra boosted the volumes on sale on the August and September GDT sessions significantly. The early August GDT session still generated a firm price for FCMP as the additional volume was quite easily absorbed by buyers out of the Middle East, SEA and China. Time will have to prove whether this firmness is sustainable against the peak volumes coming up. The current price for FCMP for delivery as of October is USD 3550-3600 FOB.
Need market insights or sourcing FCMP?
Speak with your local Interfood specialist
Our team closely monitors global dairy markets and works with a wide network of milk suppliers. Whether you need market insights or reliable milk supply, Interfood specialists are ready to help you navigate the market.
Contact us
More insights
If you're interested in FCMP, you may also like these topics:
