MD_DA530                                                         
DA                                                               
MD DA530 Dry Whey - Central                                      

MADISON, WI.  September 08, 2016 (REPORT 36)                     

DRY WHEY - CENTRAL                                               

Central whey prices are higher and industry contacts describe the market tone 
as firming a little. Some manufacturers report tight or comfortable 
inventories. Dry whey production is steady and in line with cheese 
production. A few industry contacts note some buyers are open to taking in a 
few extra loads to insulate themselves from potential price increases. In 
addition, a few processors are willing to clear out any excess inventories. 
Animal feed whey prices are higher, driven by price increases in the food 
grade whey market and export buyers seeking out material for animal feed. 
Domestic activity is a little slow. A few end users say they are content to 
work through existing inventories and are not receiving many offers from 
manufacturers. The DMN monthly average of the mostly price series for Central 
dry whey during August was $0.2798, compared to $0.2462 a year ago. The 
monthly average of the range price series for Central animal feed whey during 
August was $0.2123, compared to $0.2064 a year ago. The NASS Dairy Products 
report noted U.S. total dry whey production for July 2016 was 83.9 million 
pounds, up 2.7 percent from a year ago. January-July U.S. total dry whey 
production totals 570.1 million pounds, 0.9 percent ahead of the same time 
span in 2015. The Central region accounted for 47.6 percent (38.9 million 
pounds) of U.S. human dry whey production in July. This production is 3.2 
percent lower than a year ago. Total U.S. dry whey human month ending stocks 
for July were 68.7 million pounds, 10.1 percent below a year ago.  

F.O.B. CENTRAL:    .2550 - .3800   MOSTLY:    .2750 - .3350      
F.O.B. CENTRAL: ANIMAL FEED MILK REPLACER:    .2250 - .2750      


U.S. Dry Whey Exports. H.S. Code 0404104000(FAS)
                 2016 Exports      % Change From 
                 (Million Lb.)       1 Year Ago

July Total                36.9           + 1
 
TOTAL, JAN - JULY        220.9           - 15
 1 China                  66.3           - 13
 2 Canada                 27.5           + 3
 3 Mexico                 21.2           - 23
 4 Vietnam                16.7           + 50
 5 Philippines            15.8           - 26


1100CT Mike.bandli@ams.usda.gov  608.557.7010
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