SWP
EU SWP valorization improves
Europe
Changing market balance is finally pushing prices firmly upward
It took a long time for SWP prices to move closer to the level of protein valorization that is comparable with protein values found in WPC-80 and WPI since about a year. WPC-80 prices are also appreciating but the move of food SWP prices to EUR 900-1150 ex works narrows the gap. Prices of feed SWP are around EUR 900 delivered Netherlands for both nearby and for further out. It appears that stocks of the second tier brands are starting to get depleted while distributors in the main export markets are also dealing with low inventory levels. In a market where whey concentrate supply is tight, this inevitably pushed prices higher.
Americas
Market feels stable and a bit boring
The US was ahead of the EU in bringing SWP prices closer to levels that correspond with the elevated WPC-80 and WPI prices. Therefore SWP remained to be traded at USD 0.53-0.58/lb (1170-1280/t) ex works. The market actually felt a bit boring over the last couple of weeks. Supply feels looser than before but downside risk seems to be limited in Q4.
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