MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI. April 28, 2016 (REPORT 17)                         

NONFAT DRY MILK - WEST                                           

Western prices for low/medium heat nonfat dry milk (NDM) shifted 
higher, following upward trends in various indices. The strengthening 
in prices surprise some industry participants, as NDM supplies are 
readily available in the f.o.b. spot market. Some buyers/end users 
are taking a wait and see approach, delaying purchases while 
anticipating a fall in prices. On the other hand, some manufacturers 
believe that the market is firming. At this point, the market 
undertone is mixed. Sales outside contracts have been light 
throughout the week. Low/medium NDM production is ongoing as heavy 
condensed skim volumes continue clearing into dryers. Inventories are 
generally steady to building. High heat nonfat dry milk prices are 
mixed. Current f.o.b. spot prices are edging below a dollar per 
pound. Consequently, the top price of the range was adjusted lower to 
represent those prices. The market undertone is unsettled. Demand 
from dry mix processors is active, but is weak from bakers. High heat 
processing is irregular, driven by current contractual requirements. 
Inventories are steady.

F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:    .7050 - .7900   MOSTLY:   .7425 - .7750      
HIGH HEAT:          .8200 - .9500                                


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: http://www. 
marketnews.usda.gov/mnp/da-home