DCA Benchmarks: High Protein commentary week 39

The prices on the high protein market remain under pressure, but the market is not going down in a straight line. The market is oscillating somewhat, as is also shown in previous weeks. The general tendency remains down, however. In june the WPC80- benchmark stood at more than €28000 a tonne, now the benchmark price is a lot lower. The same goes for WPI90. Trade has cooled down to a certain extent, with a lot of product from cheaper origins on offer, but the premium producers try to hold on to higher price levels. On the other hand, alternatives for WPC80 and WPI90, are reaching the market. MPC85 is one of these products. The price is nearing €16000 a tonne. A few thousends more up and it has to face-off with the cheapest WPC80. Miscellar Casein is following MPC85 closely. It is just a fraction cheaper. These products do have a different functionality than whey products, however. While there seems enough high protein whey product on offer in Europe, the situation in het US is a little different. Supply has tightened somewhat, while prices are generally spoken comparable.With profitability being high in the high protein dairy business on both sides of the ocean, the availability of lower protein whey products has deteriorated. This drives prices up there too.