Permeate
Buyers hesitate to become too reliant on US permeate
Europe
Permeate market follows the lactose market towards higher price levels
Last month’s weakness of the Eastern EU origins proved temporary as prices of Eastern EU product improved whereas prices in Western EU stabilized. Prices of all origins are mostly in the range of EUR 700-750 ex works, with some outliers above this level. A lot of feed permeate finds its way into China these days, be it at lower price levels as pork prices are weakening as well. Food whey sales in SE Asia are strong as well. Additional upward potential may get moderated due to the growing availability in the US.
Americas
US origins are competitive but buyers hesitate
US permeate continues to trade in the range of USD 0.26-0.30/lb (575-660/t) ex works. Availability is strong and overall Asian demand is not strong enough to clear the pressure. The fall of the USD/EUR exchange rate brings more export opportunities within reach for US origins but potential buyers are hesitant to fully depend on US origins at this point of time.
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