SMP/NFDM
Protein demand continues to soar
Europe
Prices have been bouncy in the past four weeks
In the past four weeks the price for SMP in the EU has been bouncing up and down between EUR 3600 and 3800 several times. Right after the early November GDT the price is around EUR 3700-3800 ex works again but as it has been rising since last week, buyers are currently sitting on their hands. There continues to be a mismatch between supply and demand of milk proteins and this is not likely to be resolved any time soon. It is clear that the heatwaves in the EU had quite an effect on milk production in the summer months, but these may create further supply constraints in the winter months as sileage quality and quantity have been compromised. This means that there may well be further upward price potential.
Americas
The NFDM/SMP market turned nervous
Even in a tight – and in general still bullish – dairy proteins market, prices can experience occasional dips. After many months of price appreciation to a level of USD 2.25/lb in early October, NFDM dropped briefly to a level as low as USD 2.04/lb before bouncing back up with some force to this week's price of USD 2.15/lb (4740/t) ex works. Towards the East of the US prices will be slightly higher. Buyers stepped in massively on the way back up and in Mexico in particular the buyside seems to be a bit better forward covered by now. Above USD 2.20/lb customers are reluctant to buy and as a result the market now feels somewhat slow.
Asia-Pacific
Strength in demand does not budge
The APAC market continues to be under the influence of the strong demand for protein. Most of the buyside maintain their hand-to-mouth behavior and hope for better circumstances in Q1. At the current price level of USD 4300-4400 ex works outside GDT the SMP price has made a steep ride up in the last 3 months. The end of the price increase may not have been reached as demand for milk proteins continues to outpace the milk supply.
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