MD_DA530                                                         
DA                                                               
MD DA530 Dry Whey - Central                                      

MADISON, WI.  April 06, 2017 (REPORT 14)                         

DRY WHEY - CENTRAL                                               

Central dry whey prices increased at the top of the range, but saw slight 
decreases on the bottom and top of the mostly price series. Whey producers are 
continuing to see Latin American and Asian export interest. However, 
competition is increasing as contacts report Europe is beginning to offer 
competitively priced whey to international buyers. Dry whey production 
continues to climb as readily available milk flows into Class III plants. Some 
contacts expect that recent pushback at higher dry whey prices, along with 
building inventory levels, will put some downward pressure on dry whey. Some 
whey suppliers report that a number of contractual buyers are starting to 
request delayed shipments in order to manage inventory levels. The dry whey 
market tone is uncertain. Animal feed whey prices were steady. The animal feed 
whey spot market was quiet. Animal feed whey inventories range from comfortable 
to long, as many end users are adequately stocked. The NASS Dairy Products report 
noted U.S. total dry whey production for February 2017 was 76.1 million pounds, up 
3.1 percent from a year ago. January through February 2017 U.S. total dry whey 
production totaled 160.3 million pounds, 1.0 percent above the same time span in 
2016. The Central region produced 36.4 million pounds of U.S. human dry whey 
production in February, 2.6 percent higher than a year ago.

U.S. Dry Whey Exports. H.S. Code 0404104000(FAS)
                 2017 Exports      % Change From 
                 (Million Lb.)       1 Year Ago

February Total           32.9           +  12
 
TOTAL, JAN - FEB         66.9           +  13
 1 China                 28.4           + 114
 2 Canada                 7.5           -   7
 3 Mexico                 7.0           +  15
 4 Japan                  3.9           -  29
 5 Philippines            3.5           -  20

F.O.B. CENTRAL:    .3800 - .6100   MOSTLY:    .4700 - .5200      
F.O.B. CENTRAL: ANIMAL FEED MILK REPLACER:    .3375 - .4500                                                                   

1100CT Israel.weber@ams.usda.gov (608)422-8601
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-
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