Following weeks of price stagnation during the first part of summer, there was a trend change in the US high whey protein prices during August, with prices rising significantly over the last four weeks. Buyers returned to the market, taking advantage of low prices and anticipating price rises due to fears of low availability. The MBP for Whey Protein Concentrate 80% Regular FCA (FOB factory) US [Mintec Code: WCIUS] was assessed at $2.6/lb on 7th September, up 8.3% month-on-month (m-o-m). Meanwhile, the MBP for Whey Protein Isolate 90% FCA (FOB factory) US [Mintec Code: WIUS] was assessed at $3.65/lb, up 6% m-o-m.
This bullish run is due to fundamentals: the extreme weather during summer negatively affected US milk output, particularly in the western and southwestern states. As a result, the Class III milk spot price climbed 8.4% week-on-week on 6th September. This tight availability of milk supply was exacerbated by low stock levels among most producers, distributors, and buyers. On the demand side, retail demand was reportedly stronger than expected, particularly in the e-commerce channel; meanwhile, export sales were strong, leading buyers to rush for products prior to price rises.
In the EU, high whey protein concentrates prices have steadily increased since the start of June 2023. The MBP for Whey Protein Concentrate 80% Regular EXW EU [Mintec Code: WCREU] was assessed at €6,300/mt on 7th September, up 6.8% m-o-m. The MBP for Whey Protein Isolate 90% EXW EU [Mintec Code: WIEU] was assessed at €8,000/mt, up 7.4% m-o-m.