NDP / SMP

Production of NDM / SMP plunged this summer following the reduction in milk supplies in the Western states. NDM/SMP output in August was 116.3 million lbs., down 18.0% from a year earlier, and the smallest figure since September 2007.

In addition, stocks have shrunk dramatically with manufacturers’ stocks down 28% (-54.1 million lbs) to 142 million lbs in just two months and inventories are now below year-earlier levels.

Whey
Whey futures covering the first half of 2010 have increased 9.3 cents to an average of 37.5 cents. The USDA Dairy Market News describes the supplies of whey as adequate, with prices increasing due to the influence of stronger milk powder prices and increased international whey prices. As dry whey from Europe is trading in an area of 8 to 14 cents higher than a month ago making it 40 to 50 cents a lb.

According to USDA’s Dairy Products report, U.S. whey production in August was 92.2 million lbs, an increase of 3.3% from 2008. While, year-to-date, production is down 3.2% (adjusting for leap day in 2008). Dry whey stocks grew to 53.1 million lbs in August, but this number is still 10 million lbs or 15.8% below 2008 figures. Since bottoming out last October WPC prices have increased steadily during the year, rising to 67 – 70 cents. However, year-to-date production of WPC is still down 5.3%

Source: Daily Dairy Report and Dairy Market News