SWP
Strong international demand makes the difference in whey powder
Europe
Food side of the SWP market feels firmer than the feed side
Feed and food whey prices appear to be diverging. Most feed whey is traded slightly lower than last month in the EUR 1470-1500 range delivered the Netherlands, be it that there is a lot of interest for Q4 at somewhat higher prices of around EUR 1530. Food SWP prices on the other hand have appreciated to EUR 1650-2000 ex works, with the premium export brands trading above EUR 2000. Liquid whey availability is improving but the volumes that are actually being dried appear to be limited, hence the firm undertone for Q4. WPC-80 is increasingly trading above EUR 25/kg but credit insurance issues at the customer end are creating challenges at these price levels.
Americas
Nothing is capable of moving the needle but the price spread between domestic and export product remains wide
SWP market dynamics slowed down somewhat after a lot of activity a few weeks ago. Prices have not moved too much but the price gap between internationally traded premiums brands and mid to low tier low product remains. Top tier brands are mostly traded around USD 0.80/lb (1765/t) ex works whereas the low to mid-tier origins are changing hands around the USD 0.65/lb (1435/t) ex works level. US origins are still the cheapest in most export markets. Supply is not really loose but there is product when required. Local demand is still a lot slower than international demand. WPC-80 price appreciation slowed down somewhat in the US but the tightness in the EU market creates a very firm floor that almost seems to eliminate all down risk.
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