MD_DA530

     Dry Whey - Central U.S.

     Report 10 - Released on March 07, 2019

     Central dry whey prices are generally steady, although the mostly price series narrowed by a
     penny on both sides. Dry whey trading was notably slow this week. Contacts suggest most whey
     being bought is directly off the CME, thus fewer spot trades were reported in the region.
     That said, end users report offers are still coming in regularly. A number of end users,
     however, are hesitant to take on extra loads because of current warehouse space limitations
     and/or they are awaiting price decreases. Milk is readily available and discounted, but due
     to lackluster seasonal cheese orders and longer inventories, Class III plant managers are
     scaling production back. Dry whey market tones are quiet, but they are indicative of more
     downside potential than positive. As swine flu reports come in from multiple markets on the
     Asian continent, dry whey markets face an uphill battle. Feed whey prices are unchanged.
     After some price decreases last week, feed whey markets echoed those of extra grade whey and
     were hushed.

     The DMN monthly average of the mostly price series for Central dry whey during February was
     $0.4416, compared to $0.4676 in January. The monthly average of the range price series for
     Central animal feed whey during February was $0.3376, compared to $0.3655 in January.
     Prices for: Central U.S., All First Sales, F.O.B., Extra Grade & Grade A, Conventional, and
     Edible Dry Whey
     Price Range - Animal Feed; $/LB:                       .2900 - .3500


     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:                   .3600 - .4900
     Mostly Range - Non-Hygroscopic; $/LB:                  .3900 - .4700

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

     Secondary Sourced Information:

     The CME Group monthly average price for Extra Grade Whey during February was $0.3559,
     compared to $0.4640 in January.

     Dairy Products Report ± Whey Summary
     Released February 28, 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
                          Dec.       Nov.       Dec.       Dec.     Nov.
     Region               2017       2018       2018       2017     2018
     United States      84,390     73,040     73,196      -13.3      0.2

      Atlantic          21,531     20,623     21,350       -0.8      3.5

      Central           41,920     31,611     33,232      -20.7      5.1
       Wisconsin        29,803     22,588     23,819      -20.1      5.4

      West              20,939     20,806     18,614      -11.1    -10.5

     Dry Whey ± Cumulative Production January - December
                   Cumulative Production (1000 pounds)  Percent Change from
     Dry Whey             2017                  2018                2017
      Total1         1,036,904             1,007,909                -2.8
      Human2         1,017,269               989,248                -2.8
     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
                          Dec.       Nov.       Dec.       Dec.     Nov.
     Dry Whey             2017       2018       2018       2017     2018
      Human             97,032     64,526     65,141      -32.9      1.0
      Animal             1,654      1,404        848      -48.7    -39.6
     Total              98,686     65,930     65,989      -33.1      0.1
     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@ams.usda.gov

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