MD_DA640 DA MD DA640 Nonfat Dry Milk - West MADISON, WI. August 11, 2016 (REPORT 32) NONFAT DRY MILK - WEST In the West, prices for low/medium heat nonfat dry milk (NDM) are slightly lower on the range, but mixed on the mostly series. At this point, the market undertone is unsettled. However, some industry participants are optimistic about future prices. Some processors anticipate that NDM prices should get close to one dollar per pound by the end of the year. Therefore, some manufacturers are holding inventories. Meanwhile, a few processors are clearing old inventories at prices close to the bottom of the range. Sales volumes in the f.o.b. spot market have been fair to good. Demands from the bakery and dry mix sectors are good. NDM usage for cheese fortification is active. Exports to Mexico are less active this week. Low/medium heat processing is steady. Inventories are steady to slightly higher. High heat nonfat dry milk f.o.b. spot prices are unchanged on light trading. Demand from bakers is active. Production is sporadic, based on contractual needs. High heat NDM inventories are very tight. The NASS Dairy Products report noted U.S. human NDM production during June 2016 in the West region totaled 80.1 million pounds, 26.1 percent lower than one year ago. Total U.S. human NDM production during June 2016 was 143.6 million pounds, 13.2 percent lower than last year. During January-June 2016, U.S. human NDM production totaled 928.2 million pounds, 9.5 percent less than the same period in 2015. Total U.S. NDM, human, month ending stocks for June were 237.6 million pounds, 9.4 percent below a year ago. The Foreign Agricultural Service (FAS) reports June 2016 U.S. exports of nonfat dry milk and milkfat totaled 93.8 million pounds, a 9% decline from a year ago. F.O.B. WEST: Includes EXTRA GRADE and GRADE A LOW/MEDIUM HEAT: .7775 - .9200 MOSTLY: .8600 - .9000 HIGH HEAT: .9350 - 1.0400 U.S. NDM Exports, H.S. Code 0402100000(FAS) 2016 Exports % Change From (Million Lb.) 1 Year Ago June Total 93.8 - 9 TOTAL, JAN - JUN 569.0 - 11 1 Mexico 248.4 -- 2 Philippines 89.8 + 6 3 Indonesia 46.0 - 9 4 Pakistan 29.6 - 12 5 Malaysia 23.9 - 22 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