MD_DA751                                                         
DA                                                               
MD DA751 Casein - National                                       

MADISON, WI.  August 11, 2016 (REPORT 32)                        

CASEIN - NATIONAL   

Rennet and acid casein prices declined this week, following increases 
last week in response to higher GDT contracts in Event 169. This week 
a number of casein market participants have mostly discarded the GDT 
prices as a guide to current pricing, due to the small GDT volumes 
last week, which are now believed were too small to accurately set the 
tone for a much larger market. Very tight supplies in New Zealand last 
week sent many buyers to the GDT auction for casein. That buying 
pressure with limited auction offerings, moved prices sharply higher. 
This week there has been some reflection that the unique situation of 
last week with small GDT volume is not reflective of the prevailing 
market price situation in New Zealand or more so the EU, especially 
Ireland. Current New Zealand casein stocks are mostly committed, 
keeping availability very tight. The downturn of milk production in 
the EU is expected to result in less milk going into casein 
manufacturing there. This will continue to support prices near current 
levels in coming weeks. This will keep pricing generally firm with 
supplies tight to balanced, but more available than in New Zealand. 
New Zealand exports of casein and caseinates through June 2016 are 
4.2% below the same period of 2015. The U.S.A. receives 33.8% of these 
exports; China receives 13.0%; and Netherlands receives 9.2%. However, 
E.U. exports of casein and caseinates through May 2016 are 53.6% above 
the same period of 2015. Thailand receives 30.8% of these exports; the 
U.S.A. receives 15.3%; and Mexico receives 14.7%.
                                                                 
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:                         2.6425 - 2.8000                  
ACID:                           2.8000 - 2.9200                  


1100CT eric.graf@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