MD_DA751                                                         
DA                                                               
MD DA751 Casein - National                                       

MADISON, WI.  March 09, 2017 (REPORT 10)                         

CASEIN - NATIONAL                                                
 
Rennet casein prices moved into a wider range, while acid casein prices 
strengthened. Rennet markets, especially in Europe, are conflicted. While 
nervous about weaker current GDT event results, the reality is that higher 
contract pricing in coming quarters has and still is being finalized to 
secure rennet casein. Uncertainty as to European milk supply trends and 
milk availability for rennet casein manufacturing is also a significant 
uncertainty affecting rennet casein pricing. The recent GDT result had 
limited impact on current rennet casein transactions in Europe, but future 
events will be of interest as to whether weakness becomes a trend or not.

Acid casein markets remain tight. With New Zealand being a significant 
global supplier, and late 2016 milk production having been lower than year 
earlier volumes, there is concern as to acid casein availability. Many 
buyers are contracted through Q3, some beyond. It is increasingly 
challenging to get contracts in place, keeping pressure on prices.

At GDT event 183 on March 7, the all contracts price for rennet casein, 
$2.5755, was 6.6% lower than the previous event.                                                                                     
                                                                 
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:                         2.7500 - 3.3000                  
ACID:                           3.4500 - 3.7000                  


1100CT eric.graf@ams.usda.gov
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