FCMP
Stability in the Americas and Oceania, but not in the EU
Europe
Market tightens
With EU milk supply growth winding down the availability of FCMP in the EU tightened. The sell side generally appears to be well sold for the rest of the calendar year. After the holidays the buyside returned to the market and found that prices moved up by more than 10% since early August to EUR 3850-3900 ex works. There may well be further upward potential, but unless the prices for SMP and butter increase further the relative valorization of milk in FCMP may stay interesting enough to trigger higher production levels. Apart from very specific niche markets or destinations EU FCMP does not play a role on the world market as US and Oceania prices are significantly lower.
Americas
Bullish sentiment in Latam comes to an end
During August the sentiment on the Latam FCMP market turned bullish. Demand was strong enough to generate a price appreciation of around 10%. At the early September GDT FCMP prices fell a little though, and this rendered the market sentiment in Latam more cautious. Obviously, milk production in the Southern hemisphere is gearing up at the moment, but there are growing concerns about the effects of El Nino later this year. In Q4 there should be sufficient buying appetite in Brazil and out of Algeria but import licenses there have still not been issued by the Algerian government. Right now there is a certain stare down in the market, with buyers willing to pay just below USD 3750 FOB and sellers only willing to offer just above that price level.
Asia-Pacific
Prices in the physical market do not match the more bullish paper trade
In recent weeks futures indicated much higher prices than the prices that eventually materialized at GDT last week. As a result the market now feels somewhat hesitant as physical demand still needs to come alive. Chinese buyers were quite active during the last couple of weeks but buyside interest tends to subside above USD 3500. Indonesia – which is SEA's largest FCMP buyer – complicates trade at the moment due to changing Halal qualification procedures and the Middle East is already too late for Ramadan purchases. The market feels overall a bit weak as a result at prices of around USD 3625 FOB.
Need market insights or sourcing FCMP?
Speak with your local Interfood specialist
Our team closely monitors global dairy markets and works with a wide network of milk suppliers. Whether you need market insights or reliable milk supply, Interfood specialists are ready to help you navigate the market.
Contact us
More insights
If you're interested in FCMP, you may also like these topics:
