Milling & Baking News - May 1, 2012 - 55

Dairy Products
Dry dairy product prices were mostly lower last week, butter values declined to multi-year lows and cheese prices were mixed. Milk supplies remained seasonally heavy and above year-ago levels. High-heat nonfat dry milk prices were 1@3c a lb lower with low-heat and medium-heat down 2@3c amid strong production across the country. With few exceptions, prices have declined steadily since December 2011, falling about 20@30c a lb, or 15% to 20%, depending on the grade and the region. Inventories of high-heat N.D.M. declined in some cases as dryers focused on the faster drying of low-heat and medium-heat, with inventories of the latter building as a result. Demand was fair to poor with buyers covering mostly immediate needs only as prices declined. Prices of dry whey, 34% whey protein concentrate and buttermilk powder all dropped 2c a lb with wider variations within some price ranges. Heavy milk supplies leading to strong production along with spillover pressure from weakness in the nonfat dry milk market contributed pressure. The number of spot loads offered for most products increased as

dryers sought to manage inventory levels while demand was mostly light. Cooler weather in some areas reduced demand from ice cream manufacturers for dry buttermilk, supplies of which were building due to heavy butter churning. “Dry whey inventories continued to build alongside active cheese production,” the U.S. Department of Agriculture’s Market News said. “Inventories of dry buttermilk are building steadily.” Market News also said, “Manufacturers of W.P.C. 34% are competing for interest alongside readily available and generally lower-priced N.D.M.” Lactose prices eased 2c a lb but in a market with a less bearish tone amid mostly steady production and demand. Wholesale cheese prices advanced modestly while CME Group cheddar prices were mixed. Cheese output was heavy, but inventories were not increasing significantly. Demand eased as the end of the school year approached. CME Group butter prices declined to the lowest level since February 2010 and were down about 35% from a year ago. Churning remained heavy with surplus production moving to inventory. MBN

Dry products
f.o.b. plant, $ per lb Apr. 27 Whey powder .46 @ .56 Lactose .85 @ .95 Whey protein concentrate, (34% edible) 1.33 @ 1.43 (80% edible) ... Whey protein isolate (90% edible) ... Nonfat dry milk high-heat Central/East 1.28 @ 1.38 West 1.25 @ 1.35 Nonfat dry milk medium-low heat Central/East 1.12 @ 1.30 West 1.12 @ 1.26 Nonfat dry milk C.M.E. 1.24½ Buttermilk powder 1.08 @ 1.23 Casein - acid 4.60 @ 4.90 Casein - rennet 4.30 @ 4.70 Caseinate (f.o.b. ports) 4.50 @ 5.05 — Change from — Apr. 20 Apr. 13 -2c -4c -2c -2c -2c ... ... -1c -3c -2c -3c +½c -2c — — — -2c ... ... -3c -4c -5c -5c -½c -2c — — — Year ago .45 .41 1.40 ... ... 1.60 1.60 1.55 1.56 1.57¼ 1.40 4.70 4.75 5.40 Year ago 1.60¼ 1.61¼ 2.49¼ 2.46 2.09¼

Cheese
$ per lb, Central Apr. 27 C.M.E. cheddar barrels 1.43½ C.M.E. cheddar blocks 1.53½ Cheddar (Blocks 40#) 2.38½ Mozzarella 2.35¾ American 5# loaf 2.00½ — Change from — Apr. 20 Apr. 13 -2½c -2½c +¾c +4¾c +1½c +1¼c +1½c +1¼c +1c -¼c

C.M.E. 93AA Butter
f.o.b. plant, $ per lb
$2.30 $2.10 $1.90 $1.70 $1.50 $1.30 A J O J

Nonfat dry milk high-heat Central
$ per lb, C.M.E.
$1.80

Butter
$ per lb, Central C.M.E. 93AA Apr. 27 1.36 — Change from — Year Apr. 20 Apr. 13 ago -5¼c -6½c 2.07½ — Change from — Apr. 20 Apr. 13 -4c -7c — -2c Year ago 16.80 19.81

$1.60 $1.40 $1.20 A J O J

Fluid products
$ per cwt, Central Apr. 27 C.M.E. class III milk 15.73 C.M.E. class IV milk 14.83

Compiled from private sources, U.S. Department of Agriculture and Chicago Mercantile Exchange.

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