MD_DA560                                                             
DA                                                                   
MD DA560 Dry Whey - Northeast                                        

MADISON, WI.  February 04, 2010 (REPORT 5)                           

DRY WHEY - NORTHEAST                                                 

There continues to be weakness underlying Eastern dry whey markets.  The 
prevailing sentiment among potential buyers is that the market is weakening and 
prudence dictates sitting on the sidelines and observing trends for as long as 
inventory levels or contracted loads meet immediate needs.  While some 
manufacturers have slowed contract deliveries, customers generally seem to have 
inventory cushions sufficient to avoid having to resort to spot market activity 
to cover for delayed contract shipments.  Other manufacturers have whey to sell 
beyond contract obligations and are actively seeking buyers, both end-user and 
traders, but finding low levels of interest at prevailing price levels and 
market conditions.  Atlantic Region dry whey production in December 2009 
according to NASS, was nearly 19 million pounds, 5% above November but 3% below 
December, 2008.  The region manufactured 22% of the nation's NDM during 
December, 2009.  Plants in New York produced 10.7 million pounds of dry whey in 
December 2009, 7% greater than November and 1.5% above December 2008.
                                                                    
F.O.B. NORTHEAST:           EXTRA GRADE AND GRADE A:   .3500 - .4050 

11:00 Eric K. Graf eric.graf@ams.usda.gov