MD_DA751                                                         
DA                                                               
MD DA751 Casein - National                                       

MADISON, WI.  January 08, 2015 (REPORT 1)                        

CASEIN - NATIONAL                                                
                                                                 
                                                                 
Casein prices for both rennet and acid significantly decreased going into 
Q1.  The acid casein market has a wide range as contracts negotiated a 
number of weeks ago reflect the upper end of the range, while more recent 
contracts and spot sales reflect the low end of the range.  Demand is 
weak and trading activity is light as many buyers continue to take a wait 
and see attitude towards the market.  Increased skim milk powder 
production and lower prices globally are contributing to the weak market 
undertone.  Negotiations for Q2 are underway with expectations of lower 
prices.  At the January 6 GDT event 131, the average winning price for 
rennet casein for all contract periods increased 4.2% to $7,911/MT.
 
SPOT SALES AND UP TO 3 MONTH CONTRACTS.  PRICES ARE F.O.B.,      
U.S. WAREHOUSE FOR EDIBLE NONRESTRICTED AND VARY ACCORDING       
TO MESH SIZE AND QUALITY.                                        
                                                                 
RENNET:                         3.6500 - 4.0000                  
ACID:                           3.8000 - 4.4000                  

1100CT rick.whipp@ams.usda.gov 608.278.4151
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