MD_DA640 DA MD DA640 Nonfat Dry Milk - West MADISON, WI. January 07, 2016 (REPORT 1) NONFAT DRY MILK - WEST Prices for low/medium heat nonfat dry milk (NDM) are steady to lower, following movement on various pricing bases. The market tone continues to be weak. Sales in the f.o.b. spot market are light. Most buyers are purchasing low/medium heat NDM based on immediate needs. Some manufacturers are trying to clear up inventories at discount prices. Production is very active as heavy volumes of condensed skim continue clearing into NDM. Inventories are building. High heat nonfat dry milk prices are steady on light trading. Interest from the bakery sector is decreasing. The market undertone is weak. Production is irregular. Inventories are unchanged. The December 2015 Dairy Market News monthly average for the West low/medium heat nonfat dry milk mostly series is $0.7662 compared to $1.1225 a year ago. The average for Western high heat nonfat dry milk is $0.9870 compared to $1.4328 a year ago. DAIRY PRODUCTS: According to NASS, U.S. production of human food nonfat dry milk during November 2015 totaled 126.1 million pounds, 16.9% lower than a year ago, but 6.7% above the previous month. The West region's production totaled 80.5 million pounds, 22.3% lower than a year ago, but 11.0% above the previous month. F.O.B. WEST: Includes EXTRA GRADE and GRADE A LOW/MEDIUM HEAT: .6875 - .8100 MOSTLY: .7325 - .7525 HIGH HEAT: .8400 - 1.1000 U.S. NDM Exports, H.S. Code 0402100000(FAS) 2015 Exports % Change From (Million Lb.) 1 Year Ago November Total 93.9 + 1 TOTAL, JAN - NOV 1,132.1 ... 1 Mexico 503.6 + 22 2 Philippines 132.5 - 12 3 Indonesia 78.9 - 15 4 Vietnam 68.8 - 7 5 China 61.3 - 39 1100CT Angel.Teran@ams.usda.gov (608) 557-7011 USDA/AMS/Dairy Market News, Madison, Wisconsin Dairy Market News website: http://www.ams.usda.gov/market-news/dairy Dairy Market News database portal: www.marketnews.usda.gov/portal/da