FCMP
Regional prices remain closely linked
Europe
Buyside is taking it slow
The market for FCMP in Europe is a derivative of the SMP and butter markets. As prices for both products trended down in this past month it was inevitable that the EU FCMP price came down as well to settle at the current EUR 3250-3300 ex works. Producers have seen some stock accumulating in the past months of peak milk supply but demand is not strong enough to absorb that quickly. The EU does not participate in the export markets as the specs are not fitting for instance ONIL requirements. Importers have not looked at EU FCMP for a long time anyway so it will take time and effort for EU sellers if they target export destinations.
Americas
Stable market
The FCMP market in the Americas is stable. The main change this past month is that supply is noticeably loosening. Prompt availability remains limited but there are small volumes on offer for end of June and beyond. At the current price of USD 4000-4050 FOB the export opportunities are good. Brazilian demand is resilient, with solid buying for Q3 requirements. Algerian buying by ONIL and private parties has still not started, allegedly because of a delay in the issuance of import licenses, but the market continues to expect it to happen soon.
Asia-Pacific
Off season market sluggishness
Demand is taking it slow in the APAC region, in sync with the off season supply weakness. GDT volumes are small as well and this makes it difficult to make strong observations on modest price movements. The buyside is generally well stocked to sit this period out. In comparison to SMP in this region, the FCMP market has a slightly firmer undertone. The current market price is about USD 3750 FOB for Oceania product.
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