MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  March 17, 2016 (REPORT 11)                         

NONFAT DRY MILK - WEST                                           

The low/medium heat NDM market is weak, with recent offshore auction results 
underscoring this year's situation of global chronic oversupply. However, within 
some Western states, NDM inventories are tighter after significant weekly sales. 
Domestic prices are unchanged to lower. In conjunction with some higher use of 
NDM/condensed skim into cheese manufacturing, regional NDM inventories are mixed. 
A few manufacturers indicate they have limited quantities available to fulfill 
block needs. Other producers report that as milk production trends higher 
seasonally, their NDM output is growing alongside stocks on hand. A few plants 
completed maintenance projects and are once again receiving milk intakes and 
channeling those volumes through the dryer. Within various Western milksheds, 
milk marketers are coordinating use of milk among cheese and dryer plants to best 
handle weekly milk supplies. Western NDM high heat prices are unchanged. Demand 
is increasing on the f.o.b. spot market as some end users chose to not contract 
ahead of time for all needs. Current f.o.b. holdings are adequate for contract 
needs, but there are occasional delays in finding spot offerings.  

F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:    .6850 -  .8100   MOSTLY:   .7200 - .7650      
HIGH HEAT:          .8400 - 1.1025                               

1100CT Janet.Linder@ams.usda.gov 608.557.7003
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: http://www.ams.usda.gov/market-news/dairy
Dairy Market News database portal: http://www. marketnews.usda.gov/mnp/da-home