MD_DA530                                                         
DA                                                               
MD DA530 Dry Whey - Central                                      

MADISON, WI.  October 06, 2016 (REPORT 40)                       

DRY WHEY - CENTRAL                                               

Central dry whey prices are steady to higher this week. Prices moved slightly 
higher at the bottom of both the range and mostly price series. Some manufacturers 
suggest they are starting to see buyer resistance to prices above the current 
mostly price series. A few whey buyers are working to get contracts in place for 
2017. Industry contacts say the availability of dry whey spot loads has tightened. 
Production is steady to lower as manufacturers focus more effort on making higher 
whey protein concentrations. Animal feed whey prices are unchanged. End users are 
working through existing inventories, but will take additional loads if the price 
is right. The DMN monthly average of the mostly price series for Central dry whey 
during September was $0.3052, compared to $0.2798 last month. One year ago, the 
Central dry whey monthly average was $0.2044. The monthly average of the range 
price series for Central animal feed whey during September was $0.2485, compared to 
$0.2123 a month ago and $0.1793 a year ago. The NASS Dairy Products report noted 
U.S. total dry whey production for August 2016 was 73.3 million pounds, down 10.3 
percent from a year ago. January-August U.S. total dry whey production totals 644.4 
million pounds, 0.5 percent below the same time span in 2015. The Central region 
accounted for 49.2 percent (36.0 million pounds) of U.S. human dry whey production 
in August. This production is 5.0 percent lower than a year ago. Total U.S. human 
dry whey month ending stocks for August were 59.5 million pounds, 26.7 percent 
below a year ago. 

F.O.B. CENTRAL:    .2775 - .4100   MOSTLY:    .2900 - .3350      
F.O.B. CENTRAL: ANIMAL FEED MILK REPLACER:    .2100 - .2950      


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

August Total              45.1           + 47
 
TOTAL, JAN - AUG         266.0           - 8
 1 China                  86.8           + 7
 2 Canada                 30.9           + 2
 3 Mexico                 25.1           - 21
 4 Vietnam                20.8           + 64
 5 Philippines            17.9           - 27


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