DCA benchmarks: Powder commentary week 9

DCA powder benchmarks recorded gains across all commodities in week 9 (February 26), except for lactose, which remained relatively stable. While increases in the whey segment appear to be driven by strong demand for WPC80, short-term demand is also supporting price rises in SMP.SMP benchmarks continued their upward trend over the first two months of the year, with food-grade closing at €2,500 (+2.7% WoW, +13.9% MoM) and feed-grade at €2,465 (+1.9% WoW, +12.6% MoM). WMP reached €3,285 (+2.5% WoW, +6% MoM), reflecting a notable recovery over the past five weeks. However, WMP remains 22.8% below last year’s level, while SMP prices are already between 1.6% and 2.2% higher year-on-year.Whey powder has also shown notable resilience, recording the highest percentage increases within the powder category. SWP food closed at €1,255 (+4.6% WoW, +7.3% MoM) and SWP feed at €1,170 (+7.3% WoW, +12% MoM). Both products are priced above last year’s levels, particularly feed-grade SWP (+25.1% YoY). Contributors report that elevated demand and prices for WPC80 (€17,500–€18,500) are limiting the availability of solids for SWP production, translating into higher SWP prices.Meanwhile, lactose was the only commodity to report a weekly decline, decreasing by 1.6% to €1,260. That said, lactose prices remain firm, reflecting an increase of 8.2% month-on-month and 22.9% year-on-year. In addition, FFMP benchmarks closed at €2,440, increasing by 4.3% since February 3 and by 5.4% month-on-month. Contributors’ perspectives were divided. Reports of increased SMP demand and trade interest contrast with concerns about SMP competitiveness in the global market. Additionally, price growth in finished products does not fully align with strong production fundamentals and declining prices for liquid products.