DCA benchmarks: Protein commentary week 29

The whey protein market remains strong in week 29 (July 15), although recent developments suggest some easing in momentum. WPC80 benchmarks continued to decline amid limited spot availability, with lower-priced product weighing on overall pricing. Meanwhile, WPI90 remained elevated despite minimal trading activity.WPC80 benchmarks declined by 1.29% compared to the previous week, closing at €25,665 per ton and marking a month of continued decline. Although prices remain strong, up by 33% compared to the implementation of the benchmarks in March, they have also declined by 8.6% from the previous month.Despite this decline, demand for WPC80 keeps outweighing the overall supply in the region, with most production already committed in advance, especially for higher-quality WPC. This limits the amount of product offered in the spot market, although contributors report lower-priced offers from Eastern European producers, looking to improve their cash flow.At the same time, WPI90 benchmarks remain fluctuating at a high level, closing at €31,000. This represented an increase of 2.8% over the previous week, a decline of 2.6% over the previous month, and an increase of 24% over the launch of the benchmarks. Nonetheless, activity in the spot market remains severely limited, with almost no trade reported by contributors. Most production has already been contracted until Q4, although notes indicate some isolated volumes held by traders. While whey protein ingredients remain highly priced, contributors have highlighted factors that could weigh on the market going forward. Customers in both the EU and the US are increasingly pushing back against elevated prices, encouraging product reformulation and the substitution of whey proteins with milk protein concentrate (MPC). In addition, expanding whey processing capacity in the US could increase supply and exert downward pressure on prices over the medium to long term.