MD_DA540

     Dry Whey - Western U.S.

     Report 6 - Released on February 07, 2019

     Western whey prices slid lower across both the range and mostly price series. The market
     tone for dry whey is unsettled, and market participants are trying to make sense of abstruse
     market signals. While inventories are relatively comfortable to tight and domestic demand is
     steady, international demand is under pressure. Continued trade issues, weak whey permeate
     markets and more competition from EU suppliers are suppressing U.S. whey prices. Some
     manufacturers are choosing to make dry whey instead of whey permeate. While dry whey
     currently has more market options than whey permeate, some industry contacts fear the move
     could expand whey inventories and create the scenario where whey markets get worse before
     they get better.

     DAIRY MARKET NEWS Monthly Averages
     The DMN monthly average of the mostly price series for West dry whey during January was
     $0.4689 compared to $0.4456 one month ago and $0.2587 a year ago.
     Prices for: Western U.S., All First Sales, F.O.B., Extra Grade & Grade A, Conventional, and
     Edible Dry Whey
     Price Range - Non-Hygroscopic; $/LB:                   .3200 - .5200
     Mostly Range - Non-Hygroscopic; $/LB:                  .4400 - .4850

     Information for the period February 4 - 8, 2019, issued weekly

     Secondary Sourced Information:

     NASS Dairy Products - Whey Summary
     Released February 4, 2019, by the National Agricultural Statistics Service (NASS),
     Agricultural Statistics Board, United States Department of Agriculture (USDA).


     Dry Whey (Human) Production ± States and United States
                     Monthly Production (1000 pounds)   Percent Change from
                          Nov.      Oct.       Nov.       Nov.     Oct.
     Region               2017      2018       2018       2017     2018
     United States      79,807    85,322     72,983       -8.6    -14.5

      Atlantic          20,238    20,621     20,623        1.9       -

      Central           39,459    33,678     31,610      -19.9     -6.1
       Wisconsin        27,446    24,097     22,588      -17.7     -6.3

      West              20,110    31,023     20,750        3.2    -33.1

     Dry Whey ± Cumulative Production January - November
                     Cumulative Production   Percent Change
                         (1000 pounds)         from
     Dry Whey             2017      2018       2017
      Total1           950,880   933,456       -1.8
      Human2           932,879   915,995       -1.8
     1. Excludes all modified dry whey products.
     2. Values are calculated from Dairy Products report data.

     Manufacturers' stocks end of month3
                     End of month stocks (1000 pounds)  Percent Change from
                          Nov.      Oct.       Nov.       Nov.     Oct.
     Dry Whey             2017      2018       2018       2017     2018
      Human             98,453    72,140     63,938      -35.1    -11.4
      Animal             1,830     1,690      1,669       -8.8     -1.2
     Total             100,283    73,830     65,607      -34.6    -11.1
     3. Stocks held by manufacturers at all points and in transit.


     CME Close
     The Extra Grade Dry Whey price at the CME Group on Wednesday closed at $.3900, compared to
     the weekly average price of $.3885 from last week.


     CME Group Monthly Averages
     The CME Group monthly average price for dry whey during January was $.4640, compared to
     $.4595 a month ago.


     U.S. Dry Whey Exports. H.S. Code 0404104000(FAS)
                      2018 Exports      % Change From
                      (Million Lb.)       1 Year Ago

     NOVEMBER Total           35.8           - 21

     TOTAL, JAN ± NOV        452.7           + 6
      1 China                166.1           - 13
      2 Vietnam               32.8           + 127
      3 Philippines           32.7           + 21
      4 Japan                 32.0           + 31
      5 Mexico                30.6           + 2

     Published by:
     Dairy Market News - Madison, WI
     MIKE BANDLI, (608)422-8592
     Email: mike.bandli@ams.usda.gov

     Additional Dairy Market News Information:
     Dairy Market News (DMN) by Phone: (608)422-8602
     DMN Website: https://www.ams.usda.gov/market-news/dairy
     DMN MARS (MyMarketNews): https://mymarketnews.ams.usda.gov/
     DMN Database Portal: https://www.marketnews.usda.gov/mnp/da-home