MD_DA540                                                         
DA                                                               
MD DA540 Dry Whey - West                                         

MADISON, WI.  July 07, 2016 (REPORT 27)                          

DRY WHEY - WEST                                                  

Western whey prices continue to inch upward pulled by steady demand 
for whey and whey permeate used to feed Southeast Asia's growing pork 
industry. Dairy contacts say domestic demand and demand from other 
export markets are decent, but not stellar. Production, although 
fairly steady, is also starting to come under some pressure as a few 
manufacturers place greater emphasis on producing higher whey protein 
concentrates. The sum total is demand appears to be starting to pass 
supply. Inventories are mixed. A few manufacturers have committed Q3 
stocks, but others say whey is readily available. The DMN monthly 
average of the mostly price series for West dry whey during June was 
$0.2440 compared to $0.2358 one month ago and $0.4164 a year ago. NASS 
reports that May 2016 U.S. human whey production, 80.4 million pounds, is up 
3.1% from a year ago, but down 0.6% from April 2016. The Western region 
produced 18.8 million pounds of edible dry whey during May, up 15.3% from 
last year, but down 9.8% from April. Month ending stocks for U.S. human whey, 
at 85.7 million pounds, are 16.8% higher than one year ago and up 3.7% from 
April 2016.

NONHYGROSCOPIC:    .2300 - .3150   MOSTLY:    .2400 - .2850      

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

May Total                 35.8           - 20
 
TOTAL, JAN - MAY         146.7           - 20
 1 China                  36.3           - 34
 2 Canada                 19.8           + 2
 3 Mexico                 14.9           - 20
 4 Japan                  10.7           + 3
 5 Philippines            10.4           - 30


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