DAIRY MARKET NEWS, SEPTEMBER 8 - 12, 2014
VOLUME 81, REPORT 37
-6-
WHEY, WPC 34%, LACTOSE & CASEIN
Prices represent carlot/trucklot quantities for domestic and export sales packaged in 25 kg. or 50 lb. bags, or totes, spray process, dollars per pound.
DRY WHEY - CENTRAL
Central dry whey F.O.B. spot market trades and offerings are
exhibiting weaker prices, while pricing indexes are mixed. The
market tone is softening as substitute dairy ingredient prices are
lower.
Mild weather has improved drying conditions for
manufacturers, whom expect fewer off specification loads heading
into the fall season. Many buyers are hesitant to take a position as
the global whey prices are considerably lower than domestic.
Supplies are adequate for current needs. Animal feed whey prices
shifted higher on F.O.B spot load transactions.
Spot load
availability varies. The NASS Dairy Products Report noted U.S.
total dry whey production for July was 73.8 million pounds, down
6.9% from last month and 7.1% lower than a year ago. January-July
U.S. total dry whey production totals 515.0 million pounds, 11.7%
behind the same time span in 2013. July dry whey (human)
production in the Central region totaled 34.8 million pounds, 0.4%
lower than last month and 5.8% less than a year ago. The Central
region accounted for 48% of the U.S. production. January-July
Central dry whey (human) production totals 242.5 million pounds,
12.4% behind the same time span in 2013. U.S. total dry whey
month ending stocks for July was 61.8 million pounds, 1.2% higher
than a month ago, but 8.8% lower than last year. According to FAS,
January-July U.S. whey exports total 318.1 million pounds, 5%
above the same time span in 2013.
F.O.B. CENTRAL: .5700 - .7275
MOSTLY:
F.O.B. CENTRAL: ANIMAL FEED MILK REPLACER:
.6100 - .6900
.4875 - .6325
DRY WHEY - NORTHEAST
Northeast dry whey prices are unchanged from the previous week.
Additional milk supplies assisted cheese and dry whey production,
offsetting milk volumes channeled to Class I demand. Buying
interest for dry whey is light. The market tone is softening.
DAIRY PRODUCTS: According to NASS, U.S. production of
human food dry whey in July 2014 totaled 72.6 million pounds,
3.7% less than a year ago. In the Atlantic region, production of
human food dry whey totaled 21.6 million pounds, 3.1% more than
a year ago. July 2014 U.S. month ending stocks of human food dry
whey totaled 61.1 million pounds, 4.9% less than July 2013.
Cumulative 2014 total dry whey production is 515.0 million pounds,
11.7% less than 2013 during the same time span.
F.O.B. NORTHEAST:
EXTRA GRADE AND GRADE A:
July 2014 totals 72.6 million pounds, down 3.7% (2.8 million
pounds) from July 2013. The Western region produced 16.2 million
pounds of human food dry whey in July, down 7.2% (1.3 million
pounds) from a year ago. The West produced 22% of the human
food dry whey in the U.S. in July. Year to date U.S. total dry whey
production for 2014 is 515.0 million pounds, down 11.7% (67.9
million pounds) from a year ago. U.S. manufacturers' stocks at the
end of July for total dry whey are 61.8 million pounds, down 8.8%
(6.0 million pounds) from a year ago.
NONHYGROSCOPIC:
Western dry whey prices are mostly lower and the market tone is
weaker. The mostly price series declined with increased spot sales
at lower prices. Whey production continues to be heavy as cheese
plants are running busy schedules. Demand for whey is fair to good.
Lower international prices are pressuring the market and
manufacturers are lowering prices to remain competitive. Whey
stocks are building and sellers are looking to keep inventories light
as the market moves lower. According to the Foreign Agricultural
Service, U.S. exports of dry whey for January-July 2014 total 318.1
million pounds, up 5% from 2013. The exports equate to 62% of
the total dry whey production in the U.S. for that period. According
to the NASS Dairy Products report, edible U.S. whey production in
MOSTLY:
.5800 - .6650
U.S. Dry Whey Exports. H.S. Code 0404104000(FAS)
2014 Exports
% Change From
(Million Lb.)
1 Year Ago
July Total
39.4
- 17
TOTAL, JAN – JULY
1
2
3
4
5
China
Mexico
Canada
Japan
Malaysia
318.1
+
5
103.5
40.3
25.4
24.0
17.3
+
+
+
1
82
9
17
53
WHEY PROTEIN CONCENTRATE - CENTRAL AND WEST
Prices for whey protein concentrate 34% are unchanged to lower for
the week. The market is mixed with a weak undertone. Some
producers report firm demand, but others indicate spot sales depend
on price discounts. Feed and food market sector buyers differ on
WPC 34% characteristics required. Manufacturing milk supplies
are steady into cheese making plants, with some increases in cheese
yields. Buyers report availability of liquid and condensed WPC
34% volumes for drying is ample and not hampering the pace at
drying facilities.
WPC 34% inventories vary.
DAIRY
PRODUCTS: NASS reports US production of HUMAN AND
ANIMAL WPC (25.0-49.9% PROTEIN) during July 2014 totaled
23.2 million pounds, 9.9% higher than one year ago. Cumulative
production for 2014 totals 169.0 million pounds, 19.4% higher than
2013. Manufacturers’ end-of-month stocks totaled 29.0 million
pounds, 40.7% higher than one year ago.
F.O.B. EXTRA GRADE 34% PROTEIN: 1.3000-1.6050 MOSTLY: 1.3800-1.5350
.6700 - .7350
DRY WHEY - WEST
.5500 - .7050
U.S. WPC < 80% Exports, H.S. Code 0404100500(FAS)
2014 Exports
% Change From
(Million Lb.)
1 Year Ago
July Total
23.3
+
TOTAL, JAN – JULY
141.3
-
6
56.3
23.0
21.5
6.2
6.1
+
+
+
+
36
43
17
45
19
1
2
3
4
5
China
Mexico
Canada
Singapore
Australia
N.C.
CONTINUED ON PAGE 6A