MD_DA530                                                         
DA                                                               
MD DA530 Dry Whey - Central                                      

MADISON, WI.  January 21, 2016 (REPORT 3)                        

DRY WHEY - CENTRAL                                               
                                                                 
In the Central region, dry whey prices shifted lower. Several 
manufacturers are pushing through some sales to export, which necessitated 
lower prices to compensate for transportation. End users and resellers 
have some contracts in place to cover January and/or Q1 needs. The 
periodic fulfillment of these contracts is keeping inventories below year 
end levels, but many manufacturers want to keep holdings in check. In some 
cases, end users are trying to extend their buying into Q3/Q4, but these 
efforts have fallen short of expectations in most cases. At this time, few 
manufacturers are ready to tie up future production at a fixed price. 
Offers based on various market indices have a better chance of catching 
the attention of manufacturers. Some resellers are adding to current 
holdings as they view the downside risk as minimum. End users in the 
blended feed market sector report their near-term needs are steady to 
somewhat higher as ongoing availability of higher protein and fat powders 
require more dry whey for producing feed with standardized protein values. 
Dry whey production in the Central region is active. Due to some changes 
in how milk volumes are being handled on a plant to plant basis within the 
region, a few plant operators report their daily farm milk intakes are 
higher, prompting production of additional cheese vats and dry whey. 
Animal feed dry whey prices are unchanged to higher on moderate trading.  
A few producers report they have reinstated customary pricing on animal 
feed whey. Production is light as most plants are running well. 

F.O.B. CENTRAL:    .1800 - .2700   MOSTLY:    .2000 - .2450      
F.O.B. CENTRAL: ANIMAL FEED MILK REPLACER:    .1425 - .2050      

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