MD_DA540                                                         
DA                                                               
MD DA540 Dry Whey - West                                         

MADISON, WI.  February 4, 2010 (REPORT 05)                      

DRY WHEY - WEST

Whey prices were steady this week.  Whey production schedules remain 
heavy.  The market could be described as unsettled.  Buyers remain 
cautious as futures are currently at a discount to the cash market.  
Supplies are fully sufficient for contracted needs.  Although spot 
offerings are tight, the feeling amongst buyers is that supplies are 
building and that prices could show weakness in the near future.  
According to the NASS Dairy Products report, edible whey production in 
December totals 86.2 million pounds, nearly the same amount as last 
year.  The Western region produced 26.1 million pounds of whey in 
December, down 4.2% from last year.  The West produced 30.3% of the whey 
in the U.S. in December.  Cumulative total dry whey production for the 
year in the U.S. is 1.08 billion pounds, down 2.3% or 25.5 million 
pounds from the same period in 2008.  Manufacturers' stocks at the end 
of December for edible whey are 45.3 million pounds, down 27.5% from 
last year.  

                                                              
NONHYGROSCOPIC:    .3700 - .4300   MOSTLY:    .3900 - .4200      

10:00c Robert.Hunter@ams.usda.gov 608-250-3217