MD_DA530                                                         
DA                                                               
MD DA530 Dry Whey - Central                                      

MADISON, WI.  December 03, 2015 (REPORT 48)                      

DRY WHEY - CENTRAL                                               

Central dry whey prices are higher on the bottom of the range while 
steady on the top of the range and across the mostly series on light 
f.o.b. sales. End users report offers from second tier sellers 
outnumber those from manufacturers. Eastern dry whey is clearing into 
the Central region via resellers at competitive delivered prices, 
despite the additional transportation expenses these loads carry. 
Buyers/end users are in the market, with price trumping immediate 
availability as they sort through offers. Manufacturers are focused on 
wrapping up 2016 contracting, which has gotten off to a slow start. 
Buyers are connecting the noticeable decline in weekly spot offers 
coming from manufacturers and encouragement by manufacturers to 
increase 2016 contract volumes. Dry whey production is steady to 
higher as additional milk volumes clear into Class III facilities. 
Several cheese manufacturers report flat Class spot milk prices, plus 
a financial return from skimming and selling cream, are helping them 
cost-effectively meet end of the year cheese orders. This is also 
netting more dry whey on a weekly basis, but many manufacturers 
indicate dry whey inventories are not burdensome. In fact, some 
producers indicate inventories are short of near term order 
fulfillment. Animal feed dry whey prices shifted higher on the bottom 
of the range, but are steady on the top. Inventories at manufacturers 
are light as dryers are working well. A few spot loads are available, 
but manufacturers indicate buyers are looking for price concessions as 
the calendar advances despite comparative lower availability than in 
past weeks.  

F.O.B. CENTRAL:    .1800 - .2800   MOSTLY:    .1800 - .2425      
F.O.B. CENTRAL: ANIMAL FEED MILK REPLACER:    .1500 - .1850      

Dairy Market News Reporting Change Notice
Upon the conclusion of the October 2015 industry comment period and a 
review of industry responses, Dairy Market News (DMN) is updating the 
Dairy Market News Working Guidelines, effective Report 1, January 
2016. The updates will allow DMN market reports to additionally 
include information and sales prices reported by individuals and firms 
functioning as marketing agents selling on the behalf of dairy product 
manufacturers. The Working Guidelines updates are intended to capture 
more information on pricing and market conditions and reflect the 
evolution of the marketing of dairy products. Currently, market 
pricing information is collected for first sale, f.o.b. producers' 
plants or warehouses. 

Link to current and updated DMN working guidelines:
http://www.ams.usda.gov/market-news/individual-dairy-market-news-
commodity-reports

December 1, 2015

                                                                 
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