DCA benchmarks: Protein commentary week 38

The whey protein market is reactivating after the quiet summer period in week 28 (September 16), amid bearish sentiment and renewed trading activity in Europe. WPC80 and WPI90 benchmarks declined to their lowest levels since May, while elevated whey protein prices are increasing the attractiveness of MPC as an alternative protein source. In the United States, WPI 90 prices showed greater resilience, resulting in a different production response compared with the European market.WPC80 declined to their lowest point since May, closing at €23,250 per ton. This represented a decline of 8.8% over the previous week and 11.4% over the previous month, amid a notable activation of trading activity. According to contributor comments, this decline was linked to both resistance from certain buyers and additional volumes in the spot market, coming missed orders for the fourth quarter. While benchmarks declined across both regular and instant segments, instant WPC80 prices appeared to face lower pressure, resulting in a widening spread between both segments.WPI90 benchmarks stood at €28,835 per ton, a decline of 4.7% week-over-week and 11.5% month-over-month, also the lowest value since May. Although the value per ton of protein remains higher in WPI90 and demand remains high, liquidity is a challenge and production is still prioritizing WPC80 production.The United States market observed a similar situation in prices, yet a different market response. The USDA reported an indicative WPC80 price of $12.5 per pound (€23,706 per ton), with prices remaining flat or declining slightly, as manufacturers try to maintain prices and buyers holding their orders. Prices for WPI90 are reportedly firm at $14.5 per pound (€27,499 per ton), supported by tight inventories and a good demand. The resulting response was different to the European market, with production shifting from WPC to WPI.Contributors highlighted the increasing importance of MPC as an alternative source of protein considering the elevated whey protein prices, indicating prices between €13,428 to €16,470 per ton of protein. This stands from 39.8% to 50.9% lower than WPC80’s price for protein (€27,352), which could trigger some substitution processes in formulations, despite the different functionalities of the products.