DCA benchmarks: Powder commentary week 6

Week 6 (February 5) observed an accelerated increase in DCA Market Intelligence’s powder benchmarks. This cemented a recovery observed across the last weeks, with the most important increases observed in SMP Food & Feed. WMP, Lactose, FFMP, and SWP Food reported a more moderate increase, while the only decline in the segment was reported in SWP Feed.SMP observed the largest increase in the segment, with food-grade SMP increasing by 8.2% over the previous week to €2,375. SMP Feed also faced a remarkable increase of 6.62% week-over-week to €2,335. That said, SMP Feed faced a higher recovery over the last month, +17.34%, while SMP Food increased by 15.57%. WMP’s pricing increase was more moderate, +0.32% week-over-week-and +2.47% month-over-month, closing at €3,110.The whey segment experienced positive results in SWP food, but negative developments in SWP Feed. While food-grade whey benchmarks increased slightly to €1,175 (+0.43% WoW), feed-grade whey powder declined to €1,030 (+0.49 WoW). This is also a continued increase for SWP Food and a more stable pattern for SWP Feed throughout the month.The positive sentiment also extended to Lactose, which closed 3% higher than the previous week at €1,200. FFMP pricing also reflected a weekly increase of 1.08%, reaching €2,340. Contributor feedback was clearly bullish for milk powders, especially SMP. A strong upward movement was described post-Gulfood, with the market catching buyers short on stock. One explanation given was that traders positioned short and ran inventories low, with a rapid increase in pricing once buying resumed. While some caution remains, especially regarding the duration of the increase, the general perception leans toward a supportive environment for prices.