DCA benchmarks: Protein commentary week 31

A quiet and illiquid whey protein market kept WPC80 benchmarks stable in week 31, while WPI90 posted a slight decline. Tight inventories and limited spot availability continue to support price stability at a high level, with most Q3 and Q4 volumes already contracted and similar market conditions reported in the US.WPC80 benchmarks closed at €25,335 per ton, remaining steady compared to the previous week (-0.6%) but declining by 5.5% over the previous month. That said, prices remain relatively stable at a high level, up by 31.3% over late March, supported by high demand. Contributors highlighted that contracts have been mostly closed for Q3 and Q4, thus limiting the overall availability of WPC80 in the spot market. The United States (US) observes a similar situation, with the USDA reporting tight inventories and unavailability of supply in the spot market. As a result, most volumes of WPC80 were valued between €23,209 and €25,143 per ton in week 30.At the same time, WPI90 benchmarks closed at €30,500 per ton, falling by 0.4% over the previous week and by 2.4% over the previous month. The benchmarks remain 22% above the last week of March, also supported by tight inventories and limited spot availability. Reports in the US indicate even lower inventories for WPI90 than for WPC80, with prices going from €25,143 to €27,077 per ton in week 30. All things considered, market activity is expected to remain limited at least for next month. Demand could pick up further in Q4, as sport nutrition sales usually spike in the new year. Market activity and demand for MPC and MPI is also gradually increasing, as limited availability of WPC/WPI and the high pricing gap between whey and milk protein is supporting the reformulation of protein preparations, supporting the demand for milk protein.