MD_DA640 DA MD DA640 Nonfat Dry Milk - West MADISON, WI. March 10, 2016 (REPORT 10) NONFAT DRY MILK - WEST Low/medium heat nonfat dry milk (NDM) prices are mixed on an unsettled market. According to some industry contacts, NDM supplies are somewhat tight as supply is mostly committed to contracts. However, some resellers note that NDM supplies are readily available in the spot market. Also, they are receiving moderate numbers of offers from manufacturers. Some processors are transitioning from NDM to MPC production. Drying schedules for low/medium heat nonfat dry milk are active throughout many regional plants. Inventories continue to be mixed. High heat nonfat dry milk prices are steady to slightly higher. Demand from the bakery sector is moderate. Production is irregular, as required by contract fulfillments. Inventories are slightly tight. The February 2016 Dairy Market News monthly average for the West low/medium heat nonfat dry milk mostly series is $0.7296 compared to $1.0475 a year ago. The average for Western high heat nonfat dry milk is $0.9648 compared to $1.1355 a year ago. DAIRY PRODUCTS: According to NASS, U.S. production of human food nonfat dry milk during January 2016 totaled 136.2 million pounds, 17.4% lower than a year ago and 9.7% below the previous month. The West region's production totaled 81.2 million pounds, 25.7% lower than a year ago and 11.0% below the previous month. F.O.B. WEST: Includes EXTRA GRADE and GRADE A LOW/MEDIUM HEAT: .6850 - .8200 MOSTLY: .7200 - .7700 HIGH HEAT: .8400 - 1.1025 U.S. NDM Exports, H.S. Code 0402100000(FAS) 2016 Exports % Change From (Million Lb.) 1 Year Ago January Total 94.6 + 23 TOTAL, JAN 94.6 + 23 1 Mexico 43.9 + 6 2 Philippines 14.3 + 53 3 Peru 6.9 + 53 4 Indonesia 6.6 + 80 5 Vietnam 6.3 + 520 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