MD_DA530                                                         
DA                                                               
MD DA530 Dry Whey - Central                                      

MADISON, WI.  December 10, 2015 (REPORT 49)                      

DRY WHEY - CENTRAL                                               
                                                                 
Prices for dry whey in the Central region are unchanged on a weak to 
steady market. Resellers are clearing some holdings into the 
marketplace, with the help of price incentives to current f.o.b. 
offers. Manufacturers are reportedly holding comfortable inventories. 
Negotiations for 2016 contracts continue. With recent Central dry whey 
prices hovering in the low to mid $.20s, buyers are reluctant to 
accept initial offers that place prices closer to $.30. Manufacturers 
are also seeking premiums to various indices. Discussions also touch 
on which index is acceptable for use as a contract price basis. Some 
cheese manufacturers indicate cheese orders, especially for Italian 
type cheeses, are lower, and they are sending less milk into vats for 
that type of production. Cheddar/Colby producers report cheese orders 
are still active for holiday and post-holiday demand, especially as 
the block/barrel price spread diminished over the last week. Dry whey 
production varies accordingly. Animal feed dry whey prices are 
unchanged. Availability has improved from several sources as 
manufacturers/resellers/end users revisit inventories and attempt to 
clear out loads that will not be used by the year's end. Feed blenders 
report they, too, are comparing input inventories with 2015 production 
needs. They are gearing purchases toward meeting just those needs. The 
DMN monthly average of the mostly price series for Central dry whey 
during November was $0.2105, compared to $0.5869 a year ago. The 
monthly average of the range price series for Central animal feed whey 
during November was $0.1651, compared to $0.4619 a year ago. October 
dry whey (human) production in the Central region totaled 37.5 million 
pounds, 17.3 percent above a year ago.

DAIRY PRODUCTS: The NASS Dairy Products Report noted U.S. total dry 
whey production for October was 75.8 million pounds, up 11.0 percent 
from a year ago. January-October U.S. total dry whey production totals 
801.4 million pounds, 10.8 percent ahead of the same time span in 
2014. U.S. total dry whey month ending stocks for October were 60.9 
million pounds, 6.7 percent higher than one year ago. 

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

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