MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  July 14, 2016 (REPORT 28)                          

NONFAT DRY MILK - WEST                                           

Western prices for low/medium heat nonfat dry milk (NDM) are mixed on 
the range, but shifted up on the mostly series. Some resellers are 
still confused about the upward NDM spot price movement during the 
recent weeks. According to them, supplies are readily available in 
the f.o.b. spot market. However, offers from manufacturers to brokers 
have declined this week. On the other hand, some processors indicate 
that NDM stocks are trending lower in line with the regional farm 
milk production. At this point, the market undertone is firm. 
International demand, especially from Mexico, is strong. Domestic 
demands from bakers and dry mix manufacturers are active. Spot sales 
activity has been light to moderate throughout the week. Low/medium 
heat NDM manufacturing is steady, but at a lower rate compared to Q1 
and Q2 production. Inventories are steady to lower in many processing 
plants.

High heat nonfat dry milk prices are unchanged. Demand from the 
bakery sector is active. High heat NDM processing is sporadic, mostly 
dictated by contractual requirements. Inventories are tight. 
Therefore, sales in the f.o.b. spot market are limited. 

F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:    .8150 -  .9500   MOSTLY:   .8700 - .9300      
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