MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  February 04, 2016 (REPORT 5)                       

NONFAT DRY MILK - WEST                                           


Western low/medium heat nonfat dry milk prices are lower on a weaker 
market. Many manufacturers are offering NDM supplies at discount 
prices as they are trying to clear inventories. According to some 
industry participants, the activity in the spot market has been quiet 
to moderate. Some buyers/end users are in a wait and see attitude as 
they do not want to take a position at this time in the NDM market. 
Production of low/medium NDM is active throughout the region as 
manufacturing milk volumes are building. Inventories are steady to 
higher. Prices for high heat nonfat dry milk are steady in light 
trading. Demand is weak. Spot sales have been slow throughout the 
week. Production is intermittent at several plants. Inventories are 
steady. The January 2016 Dairy Market News monthly average for the 
West low/medium heat nonfat dry milk mostly series is $0.7399 
compared to $0.9998 a year ago. The average for Western high heat 
nonfat dry milk is $0.9680 compared to $1.1583 a year ago. 
DAIRY PRODUCTS:  According to NASS, U.S. production of human food 
nonfat dry milk during December 2015 totaled 147.0 million pounds, 
10.2% lower than a year ago, but 17.2% above the previous month. The 
West region's production totaled 91.2 million pounds, 14.9% lower 
than a year ago, but 12.7% above the previous month.
                                        
F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:    .6400 - .8200   MOSTLY:   .6950 - .7600      
HIGH HEAT:          .8250 - 1.1000                               




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