MD_DA771 DA MD DA771 Whey Protein Concentrate - Central and West MADISON, WI. August 10, 2017 (REPORT 32) WHEY PROTEIN CONCENTRATE 34% - CENTRAL AND WEST Whey protein concentrate 34% prices moved lower at the top of the range and the bottom of the mostly price series. Although a few processors say it has gotten more difficult to maintain the higher premium prices, there remains a two-tier market with higher prices for desired brands and WPC34% that cannot be replaced via reformulation and lower prices for WPC34% that is interchangeable with other protein sources. Manufacturers report inventories for WPC34% that meet tight customer specifications or infant formula requirements are comfortable to tight. Demand from buyers that cannot reformulate is strong. However, demand is weak for WPC34% that can be substituted easily with other protein sources. Some end users are asking their suppliers to delay shipments or to help adjust the end users' stocks for year-end financials. In addition, a number of market participants feel the whey complex is out of balance on a price per unit protein basis. There is talk within the industry that some production may shift from higher protein concentrations to WPC34% or sweet whey powder, boosting WPC34% production somewhat and creating more price pressures for whey proteins. The July 2017 Dairy Market News average of the mostly price series for Central and West whey protein concentrate 34% was $0.8919, compared to $0.9013 one month ago and $0.6937 one year ago. According to the NASS Dairy Products report U.S. production of WPC (25.0-49.9% protein) during June 2017 totaled 14.5 million pounds, 4.1 percent lower than one year ago, and 3.1 percent lower than May. Year to date total WPC (25.0-49.9% protein) production through June is 90.6 million pounds, 1.0 percent less than January through June one year ago. Manufacturers' end-of-month stocks for WPC (25.0-49.9% protein) totaled 24.0 million pounds, 5.4 percent lower than one year ago, and 3.5 percent less than May 2017. F.O.B. EXTRA GRADE 34% PROTEIN: .7100 - 1.1000 MOSTLY: .7700 - .9425 U.S. WPC < 80% Exports, H.S. Code 0404100500(FAS) 2017 Exports % Change From (Million Lb.) 1 Year Ago June Total 22.1 - 37 TOTAL, JAN - JUNE 147.7 - 1 1 China 69.2 + 1 2 Mexico 21.3 + 16 3 Canada 16.5 - 2 4 Philippines 7.9 + 121 5 Indonesia 4.8 - 31 1100CT Mike.bandli@ams.usda.gov 608.422.8592 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