SWP
EU and US price developments diverge
Europe
Feed whey prices jumped up
Despite a massive price hike in feed whey last week buyers accepted the current price level of EUR 1360 delivered the Netherlands. Futures couldn’t even keep up with the rapid price appreciation in the physical market. Buyers in food whey are less willing to step in so transactions hardly took place in recent days. Based on a historic average spread between feed and food of EUR 220, food SWP likely trades at levels in the EUR 1550-1600 ex works range. Multinationals apparently are more willing to accept offers at these higher price levels.
Americas
US market continues to slowly weaken
The US dry whey market appears to turn slightly bearish. Growing availability from new processing capacity strengthens the supply side of the market whereas most of the export business was won by the EU in recent weeks and local demand is slow. WPC-80 is still produced at full capacity at increasing prices but the pull of liquids is now more or less capped. US SWP is generally traded in a wide range but most volumes gravitate to the USD 0.65-0.68/lb (1435-1500/t) ex works range.
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