MD_DA530

     Dry Whey - Central U.S.

     Report 41 - Released on October 10, 2019

     Dry whey trading continues in its buyer-friendly status. Offers, and inventories, are
     plentiful, as prices trend toward the low to lower-middle $.30 mark. Since the onset of the
     weakening of the high-protein (namely WPC 80) markets, contacts have expected more
     production would shift to sweet whey powder. Contacts also relay the Western region has
     plenty of loads and shipments are heading east at a discount. Dry whey market tones are
     undoubtedly in a quandary. Some market participants say they expect markets to be in the
     high $.20s in the near term. Animal feed whey shifted lower on the top end of the range on
     slow trading.

     The DMN monthly average of the mostly price series for Central dry whey during September was
     $0.3532, compared to $0.3500 in August. The monthly average of the range price series for
     Central animal feed whey during August was $0.2550, compared to $0.2598 in August.
     Prices for: Central U.S., All First Sales, F.O.B., Extra Grade & Grade A, Conventional, and
     Edible Dry Whey
     Price Range - Non-Hygroscopic; $/LB:                   .2700 - .3650
     Mostly Range - Non-Hygroscopic; $/LB:                  .3200 - .3450


     Prices for: Central U.S., All First Sales, F.O.B., Extra Grade & Grade A, Conventional, and
     Non-Edible Dry Whey
     Price Range - Animal Feed; $/LB:                       .2400 - .2600

     Information for the period October 7 - 11, 2019, issued weekly

     Secondary Sourced Information:

     The CME Group monthly average price for Extra Grade Whey during September was $0.3800,
     compared to $0.3701 in August.

     Dairy Products Report ± Whey Summary
     Released October 3, 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
                           Aug       July        Aug        Aug     July
     Region               2018       2019       2019       2018     2019
     United States      77,565     80,892     83,363        7.5      3.1

      Atlantic          21,829     23,396     21,851        0.1     -6.6

      Central           34,838     35,938     38,049        9.2      5.9
       Wisconsin        25,102     23,521     24,031       -4.3      2.2

      West              20,898     21,558     23,463       12.3      8.8

     Dry Whey ± Cumulative Production January - August
                   Cumulative Production (1000 pounds)  Percent Change from
     Dry Whey             2018                  2019                2018
     Total1            698,591               637,375                -8.8
     Human2            686,173               626,452                -8.7
     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
                           Aug       July        Aug        Aug     July
     Dry Whey             2018       2019       2019       2018     2019
     Human              71,510     65,469     70,407       -1.5      7.5
     Animal              2,191      2,135      1,998       -8.8     -6.4
     Total              73,701     67,604     72,405       -1.8      7.1
     3. Stocks held by manufacturers at all points and in transit.
     Published by:
     Dairy Market News - Madison, WI
     ISRAEL WEBER, 608-422-8601
     Email: israel.weber@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 (My Market News): https://mymarketnews.ams.usda.gov