MD_DA530                                                         
DA                                                               
MD DA530 Dry Whey - Central                                      

MADISON, WI.  August 06, 2015 (REPORT 31)                        

DRY WHEY - CENTRAL                                               
                                                                 
Central dry whey prices are lower on the range and unchanged to lower 
on the mostly price series. Producers report the steady cheese market 
is keeping usual milk volumes, milk spot loads, and condensed skim 
clearing through cheese vats. That is keeping dry whey production 
active. Cheese and dry whey manufacturers are caught between wanting 
to capitalize on the current active cheese demand, while knowing the 
attendant dry whey production is undercutting the whey market. Dry 
whey interest is light as many end users have made incremental 
purchases through the last few months and are now looking at emptying 
warehouses before the beginning of Q4. A few manufacturers are doing 
the same, clearing inventories at lower than usual prices before the 
advent of their new fiscal years. Dry whey inventories are generally 
higher than projected for this time of year. The DMN monthly average 
of the mostly price series for Central dry whey during July was 
$0.3364, compared to $0.6591 a year ago. The monthly average of the 
range price series for Central animal feed whey during July was 
$0.2330, compared to $0.5673 a year ago. June dry whey (human) 
production in the Central region totaled 39.2 million pounds, 12.1% 
above a year ago. The Central region accounted for 49% of the U.S. 
production in June. Animal feed dry whey prices are steady. End users 
report limited interest because their holdings are adequate for 
current needs, and offers for animal feed or edible dry whey are 
obtainable within a few phone calls. Some dry whey manufacturers 
report inventories of animal feed whey are building as the recent hot 
and humid weather affects the efficiency of whey dryers. 
Dairy Products: The NASS Dairy Products report noted U.S. total dry 
whey production for June was 80.7 million pounds, up 1.7% from a year 
ago. January-June U.S. total dry whey production totals 477.8 million 
pounds, 8.5% ahead of production during the same time span in 2014. 
U.S. total dry whey month ending stocks for June were 73.0 million 
pounds, 17.5% higher than one year ago. 


F.O.B. CENTRAL:    .1525 - .3900   MOSTLY:    .2600 - .3300      
F.O.B. CENTRAL: ANIMAL FEED MILK REPLACER:    .2000 - .2500      


U.S. Dry Whey Exports. H.S. Code 0404104000(FAS)
                 2015 Exports      % Change From 
                 (Million Lb.)       1 Year Ago

June Total             38.6            - 10

TOTAL, JAN - JUNE     222.0            - 20
1 China                67.3            - 23
2 Canada               23.6            + 6
3 Mexico               23.2            - 32
4 Philippines          18.1            + 34
5 Indonesia            13.0            + 40




1100CT Janet.Linder@ams.usda.gov 608.557.7003
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: http://www.ams.usda.gov/market-news/dairy
Dairy Market News database portal: 
http://www.marketnews.usda.gov/mnp/da-home