MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  August 04, 2016 (REPORT 31)                        

NONFAT DRY MILK - WEST                                           

Western f.o.b. prices for low/medium heat nonfat dry milk (NDM) are mixed on 
the range and mostly series. The market undertone remains uncertain for many 
industry participants. Spot sales in the domestic market are light to 
moderate. Some buyers/end users continue pushing manufacturers to drop 
prices. On the other hand, some processors prefer to hold NDM stocks rather 
than selling, anticipating better prices in the near future. Demands from 
bakers, cheese and dry mix manufacturers are active. Trades to Mexico are 
less active compared to the past two weeks. Moderate condensed skim volumes 
continue clearing into NDM processing. NDM production is ongoing, but at a 
lower rate compared to Q1 and Q2 production levels. Inventories are steady 
to building. F.O.B. spot prices for high heat nonfat dry milk are steady to 
higher. Interest from the bakery sector is active. Production is irregular, 
based on contractual requirements. High heat NDM supplies are very tight. 
Consequently, spot trading activity is limited. The CME Group monthly 
average price for Grade A NDM during July was $0.8638, compared to $0.7622 a 
year ago. The July 2016 Dairy Market News monthly average for the West 
low/medium heat nonfat dry milk mostly series is $0.8910 compared to $.8203 
a year ago. The average for Western high heat nonfat dry milk is $0.9713 
compared to $1.0048 a year ago. According to California Department of Food 
and Agriculture, June 2016 nonfat dried milk (NDM) production in California 
totaled 38.0 million pounds, 35.2% lower than June 2015. From January 
through June 2016, NDM production totaled 314.3 million pounds, down 22.4% 
from the same period in 2015. 


F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:    .7800 -  .9300   MOSTLY:   .8500 - .9100      
HIGH HEAT:          .9350 - 1.0400                               
   


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-
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