MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  July 21, 2016 (REPORT 29)                          

NONFAT DRY MILK - WEST                                           

F.O.B. spot prices for western low/medium heat nonfat dry milk (NDM) 
are mixed on the range, but steady on the mostly series. At this 
point, the market is balanced as supply is very similar to the 
current demand. However, a few buyers/end users are pushing 
manufacturers to lower prices. Also, a few processors do not hesitate 
to hold stocks, anticipating higher prices in the near future. 
According to some industry participants, low/medium heat NDM spot 
prices will be close to one dollar per pound by Q4. The resale market 
has been very active this week. NDM sales to cheese makers and bakers 
are active. Demand from Mexico is strong. Low/medium heat NDM 
production is ongoing as moderate condensed skim volumes continue 
moving into dryers. Inventories are mostly steady, but a little tight 
in some processing plants. F.O.B. spot prices for high heat nonfat 
dry milk are steady to slightly higher. Interest from bakers is 
rising. Spot sales are limited as supplies are very tight. Production 
is irregular in line with contractual needs.


F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:    .8075 -  .9500   MOSTLY:   .8700 - .9300      
HIGH HEAT:          .9100 - 1.0300                               


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