DCA Benchmarks: Powder market commentary week 49

The powder market observed mixed results in week 49. Milk powders observed a decline, which was evident in WMP and SMP-feed. Meanwhile, sweet whey powder and lactose exhibited a positive performance.Food-grade SMP reached €2,020 per ton in North-Western Europe (NEW), reflecting a €40 decline compared to the previous week. The decline was steeper in the Netherlands and Belgium, and more moderate in Germany. Meanwhile, feed-grade SMP observed a €60 decline to €2,005 per ton. WMP was the commodity that observed the largest decline, falling by €210 to €2,880 per ton. Volatility in benchmarks was low for the different milk powders. Measured through their standard deviation, values ranged between 0.4% and 2.8%.The whey market was marked by both higher prices and volatility. In NWE, food-grade whey powder totaled €1,170 per ton, up €70 over the previous week. The increase was higher for Germany than for the Netherlands and Belgium. Feed-grade whey powder was relatively stable, increasing by €5 to €1,005 per ton. That said, benchmarks were more consistent for feed-grade whey powder (S. Dev: 1.4%), while food-grade whey powder was more volatile (S. Dev: 4.3% - 6.4%).Lactose benchmarks reached €1,215 per ton, increasing by €65 compared to the previous week. Meanwhile, we approved the FFMP commentary with two inputs, as both observations were consistent with each other and reflected the market behavior.The market sentiment echoed the benchmarks’ development, positive in whey products and negative in milk powders. That said, participants have observed a high volatility in prices for SMP compared with other regions in the EU, namely France and Germany. Meanwhile, sentiment in the whey market is diverse. While some players report stability or a slight increase across the week, others report price declines within week 49.