MD_DA540                                                         
DA                                                               
MD DA540 Dry Whey - West                                         

MADISON, WI.  February 19, 2015 (REPORT 7)                       

DRY WHEY - WEST  

The undertone for Western whey markets is weak and uncertain.  Spot 
sales and resale transactions are occurring at prices lower than some 
contract pricing, with some resales occurring at prices above 
manufacturer spot sale prices.  Many whey manufacturers had 
previously targeted export markets for substantial volumes of output.  
This week the impact of slowdowns at Western ports intensified even 
for manufacturers who had been able to maintain some export volumes, 
with all export ports having being closed to them over the holiday 
weekend through Tuesday this week.  Even with some terminals re-
opening, there is a backlog of ships waiting to unload or load.  This 
is leading to cancellation of pending export contracts by some 
foreign customers, leaving increasing volumes of whey characterized 
as being "landlocked", with an uncertain future.  While there is hope 
that the whey will continue into export when it can be loaded and 
ship out, some whey manufacturers have learned that some of their 
traditional foreign customers are now looking to sources outside the 
U.S. for whey.  That casts additional uncertainty onto the whey 
awaiting export.  Containers for moving or holding whey are in short 
supply as is warehouse space.  With cheese production in the region 
continuing at a high rate, there is increasing uncertainty as to whey 
markets looking forward, especially if the export terminals remain 
closed.  The situation with Western ports has escalated from a matter 
of interest to a matter of genuine concern.

NONHYGROSCOPIC:    .3800 - .6000   MOSTLY:    .4200 - .4800      

                                          
1100CT eric.graf@ams.usda.gov 
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: www.ams.usda.gov/dairymarketnews
Dairy Market News database portal: 
http://www.marketnews.usda.gov/mnp/da-home