MD_DA530                                                         
DA                                                               
MD DA530 Dry Whey - Central                                      

MADISON, WI.  July 09, 2009 (REPORT 27)                          

DRY WHEY - CENTRAL                                               
                                                                 
Prices are unchanged to fractionally higher on the Central mostly dry 
whey price series.  The market is showing some weaker undertones and 
availability is variable.  Various market participants note offers of 
current product from manufacturers priced at or above the market are now 
competing with resale offers of 2009 dry whey priced at a discount to 
the market.  Others indicate product from regular suppliers is currently 
unavailable.  Dry whey production is at or near plant capacity in many 
locations.  Central dry whey is reportedly moving both East and West to 
fill supply gaps in those regions.  Animal feed whey prices are 
unchanged to fractionally higher.  Interest in calf milk replacer is 
steady to higher for the week as various manufacturers offer a narrow 
window of opportunity to lock in feed prices for July based on June 
commodity prices.  The June 2009 Dairy Market News average of the mostly 
price series for Central dry whey was $.2701 compared to $.2634 in June 
2008. The June 2009 average of the range for Central dry whey animal 
feed milk replacer was $.1858 compared to $.1900 in June 2008.  
DAIRY PRODUCTS:  NASS's Dairy Products report shows production of HUMAN 
AND ANIMAL dry whey during May 2009 totaled 95.3 million pounds, a 2.8% 
increase from April 2009, but a 3.8% decrease from May 2008.  Production 
of HUMAN FOOD dry whey during May 2009 totaled 91.4 million pounds, 2.7% 
higher than April 2009 production but 2.1% less than May 2008 
production.  Human food dry whey production during May 2009 in the 
Central region totaled 41.6 million pounds.  This dry whey production is 
2.8% higher than April 2009 production but 5.4% lower than May 2008.   
Production of ANIMAL FEED dry whey during May 2009 totaled 3.9 million 
pounds, 5.2% more than April 2009 production but 31.3% lower than 
production one year ago.  Month ending stocks of HUMAN FOOD dry whey 
totaled 47.5 million pounds, about the same as 1 month ago but 11.5% 
lower than May 2008.  ANIMAL FEED dry whey month ending stocks totaled 
1.6 million pounds, 16.3% higher than one month ago but 69.2% lower than 
one year ago.  

F.O.B. CENTRAL:    .2800 - .3075   MOSTLY:    .2825 - .2925      
F.O.B. CENTRAL: ANIMAL FEED MILK REPLACER:    .1700 - .2200      

1100CT janet.linder@ams.usda.gov  608.250.3207