MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  May 12, 2016 (REPORT 19)                           

NONFAT DRY MILK - WEST                                           

Low/medium heat nonfat dry milk (NDM) prices moved higher. The market 
undertone is mixed. Sales outside contracts are active this week. 
Some industry participants are puzzled by the recent price strength 
at the CME Group, as supplies are readily available in the market. 
However, according to some processors, NDM supplies are tight and the 
market is getting stronger. Some buyers are optimistic about future 
prices, while others are hesitant to make any purchase at this point. 
Low/medium heat nonfat dry milk production is active as moderate to 
heavy condensed skim volumes continue clearing into dryers. 
Inventories are mixed throughout the region. High heat nonfat dry 
milk prices are slightly higher. Sales outside contracts are light. 
Production is steady to lower as many processors are focused on 
low/medium heat NDM production. As a result, inventories are tight in 
the f.o.b. spot market. DAIRY PRODUCTS:  According to NASS, U.S. 
production of human food nonfat dry milk during March 2016 totaled 
171.6 million pounds, 5.1% lower than a year ago, but 22.4% above the 
previous month. The West region's production totaled 108.3 million 
pounds, 12.3% lower than a year ago, but 21.7% above the previous 
month.

F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:    .7350 - .8300   MOSTLY:   .7500 - .7900      
HIGH HEAT:          .8500 - .9700                                



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