MD_DA640 DA MD DA640 Nonfat Dry Milk - West MADISON, WI. July 07, 2016 (REPORT 27) NONFAT DRY MILK - WEST Prices for western low/medium heat nonfat dry milk (NDM) are mixed on the range, but higher on the mostly series. Mostly prices are following upward trends in various indices. Spot sales in the f.o.b. market are more active compared to the previous week. The market undertone is firmer. Interest from the bakery sector is improving. Also, usage of NDM for cheese fortification is active. Some manufacturers are holding stocks anticipating higher prices in the near future. However, some buyers/end user are taking a wait and see attitude, waiting for a drop in prices. A few brokers are receiving offers from manufacturers with prices above the top of the range, edging close to one dollar per pound. Interest is light at those prices. Condensed skim milk is less available for processing as farm milk output is decreasing in the region. Consequently, NDM production is slightly lower. Inventories are getting tight in many processing plants. Prices for high heat nonfat dry milk are unchanged. Production is irregular, based on contractual needs. Some processors are manufacturing high heat NDM to meet immediate costumers' needs. Inventories in the f.o.b. spot market are very tight. As a result, spot trading activity is light. The CME Group monthly average price for Grade A NDM during June was $0.8476, compared to $0.8734 a year ago. The June 2016 Dairy Market News monthly average for the West low/medium heat nonfat dry milk mostly series is $0.8209 compared to $.9361 a year ago. The average for Western high heat nonfat dry milk is $0.9491 compared to $1.0489 a year ago. The NASS Dairy Products report noted U.S. human NDM production during May 2016 in the West region totaled 92.6 million pounds, 20.1 percent lower than one year ago. Total U.S. human NDM production during May 2016 was 165.1 million pounds, 8.3 percent lower than last year. During January-May 2016, U.S. human NDM production totaled 783.7 million pounds, 8.9 percent less than the same period in 2015. Total U.S. NDM, human, month ending stocks for May were 235.4 million pounds, 9.9 percent below a year ago. F.O.B. WEST: Includes EXTRA GRADE and GRADE A LOW/MEDIUM HEAT: .8050 - .9500 MOSTLY: .8500 - .9100 HIGH HEAT: .9100 - 1.0225 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