SWP
Some volatility in SWP and WPC-80 but markets remain tight
Europe
Feed whey prices dipped temporarily
Sometimes the tightness of a market is indicated by how quickly balance is restored after an apparent sentiment driven dip in prices. In the past two weeks the EU feed whey market was caught by surprise by a EUR 200 fall in prices that was completely repaired again within that same time frame. Feed whey is currently priced at EUR 1400 for prompt and EUR 1475-1500 for Q4, delivered The Netherlands. The food SWP remains stable and firm and possibly even a bit tighter due to some last-minute trades before the summer holidays. Prices are still at EUR 1650-2000 ex works, with the premium export brands trading above EUR 2000. WPC-80 was a bit volatile for a moment, but prices returned largely to the EUR 24-26/kg ex works range while demand for Q4 remains very good.
Americas
Market feels overall stable and US origins remain the preferred option in export markets
Prices have moved very little compared to last month, but the market remains tight as buyers in the key export markets are getting more willing to accept lower tier US origins. US prices remain favorable compared to EU origins, so export demand is overall quite healthy. Trades of top tier brands are at price levels of USD 0.85/lb (1875/t), whereas the lower tier origins still trade at about USD 0.65/lb (1435/t), both ex works. The WPC-80 market gives mixed signals. Some sales are reportedly done at record high levels, but other signals imply that customers are pushing back. It appears that the straight line towards increasingly higher price levels has come to a halt for now, but the market remains tight.
Asia-Pacific
Slow demand in the off season
The APAC market is quiet, which makes sense as regional supply is at the seasonal low point. Outside of GDT there is hardly any Oceania supply and on GDT the sales volumes are small. This also makes it difficult to get a sense for the market, as the price that forms on GDT is susceptible to one or two buyers that are in urgent need of product. Most buyers in the region can afford to wait until Oceanian supply ramps up seasonally towards the peak levels in November. The biggest players have built security stocks when the situation around the Hormuz strait began to escalate. The current price level is about USD 3500 FOB for Oceania product. EU powder, though very competitively priced at levels of about 3200-3300 CIF Asia, continues to be met with hesitance from the buyside as factory approvals have generally expired due to the EUs long absence on the export markets.
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