This is our 3rd summary of the plant-based market divided into 2 main categories – Proteins and Starches&Sugars.
Proteins
Potato proteins
There is low availability of the product – almost all stocks are bought out. At the moment, we notice a huge demand for potato protein in Poland and the Netherlands, mainly for export to N. America for the pet food market.
The warehouses have been almost completely cleared out. Prices tend to be slightly higher from the previous week.
Vital Wheat Gluten
There is demand for VWG, but warehouses are almost empty. The aforementioned Plant-based raw commodities from Russia and Ukraine (the two biggest players in grain production) are always in high demand on the world market. Geopolitical tensions have made traders nervous, as naval exercises in the Black Sea have slowed shipping in recent days.
There is also increasing demand from the US imports due to the poor domestic harvest in N.America. Unit prices may come down, but the question will be about crop condition and moisture outlook.
Although opening world wheat stocks were revised upward by 1.05 million tons, ending stocks estimates were reduced by 1.71 million tons due to reduced production and increased consumption estimates. Producers are discussing input prices, especially fertilizer, and opportunities for their wheat.
Hydrolyzed WG
There’s very little product on the market and prices are rising. The threat of a port blockade and invasion of Ukraine has led to a surge in global wheat prices. Calf Milk Replacer producers may suffer as hydrolyzed wheat gluten is used in the production of substitute milk formulas, due to its high content of quality soluble protein. Low available stocks since September have been evident due to poor protein content in EU Wheat.
The main driver for global markets on wheat was the U.S. announcement of a possible Russian invasion of Ukraine this week. Possible disruptions in wheat supplies from the Black Sea region have led to a surge in wheat prices on global exchanges. Update: prices down last night and today based on reports of pullback of troops from Ukrainian border.
Starches&Sugars
Dextrose
Buyers are slowly getting used to the high price of the product, which is constantly increasing. European sources are drying up as demand is high again.
Additionally, there is a huge demand for food dextrose, mainly produced in China. Meanwhile, the waiting period for export shipments from China is also getting longer. Unfortunately they are not cheap either.
Corn Starch
There is a high demand for feed grade corn gluten meal. Manufacturers are looking for low cost plant based protein alternatives as willingness to pay the high prices is difficult.
Global corn prices continue to rise together with oil prices and in the face of a drought in South America, which is keeping procurement prices in Ukraine high.
