13 January 2012

1 minute read

North America

World carryout corn stocks for 2011/12 are projected to reach 128.1 million tons, up one million tons from the December estimate. MAR corn settled at $6.11/bushel, erasing the gains of the previous three weeks.

In Dairy Market News’ weekly survey, dry whey prices at the midpoint of the range topped 70¢ this week for the first time since July 2007.

In the Midwest, dry whey is mostly 69.5¢- 72¢, while in the West it’s mostly 69¢-72.25¢, DMN says.

“First quarter contracts reflect tighter supplies for the new year,” the report adds. “The whey stream supply is increasingly diverted to higher protein concentrates and therefore less is available for dry whey production.”

However, the European whey market has been steady for two months, even as US prices have tacked on 7-9¢ over that time. DMN pegs European dry whey at 58-64¢, leaving the premium of US prices over European prices at the widest ever.

In Europe, “whey volumes are starting to build as buyers have been absent from the marketplace during the year-end holidays and, for some, prices of European offerings are higher than they are willing to pay,” DMN explains. Whey futures were mixed yesterday, with Q1 contracts averaging 70.0¢ and Q2 averaging 64.9¢.

Further Reading

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You can view the full report by clicking here.