MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  September 01, 2016 (REPORT 35)                     

NONFAT DRY MILK - WEST                                           

Western low/medium heat nonfat dry milk prices are mixed on the 
range, but steady on the mostly series. Opinions from industry 
participants about the market undertone are mixed. Processors say the 
market is firming as the baking season is near. On the other hand, 
buyers/end users are puzzled with the current prices, as inventories 
are readily available. Some manufacturers are not hesitant to hold 
stocks, anticipating higher prices in the near future. Meanwhile, 
some buyers/end users are taking a wait and see attitude, trying to 
push down prices. At this point, the market undertone is unsettled. 
NDM sales volumes to cheese makers and the bakery sector are steady 
to higher this week. Trades to Mexico are active. Demand for 
condensed skim from NDM processors is strong, but supplies are less 
available for drying. Consequently, NDM production is slightly lower. 
However, a few processors are expecting to increase production during 
the holiday weekend. Inventories are readily available in most 
plants. High heat nonfat dry milk prices are slightly higher. 
Production is irregular, based on contractual needs. Inventories are 
tight. Some processors are expecting to increase production as the 
baking season is approaching. Demand from bakers is active. According 
to California Department of Food and Agriculture, July 2016 nonfat 
dried milk (NDM) production in California totaled 44.7 million 
pounds, 21.7% lower than July 2015. From January through July 2016, 
NDM production totaled 358.9 million pounds, down 22.3% from the same 
period in 2015. 

F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:    .8000 -  .9500   MOSTLY:   .8800 - .9200      
HIGH HEAT:          .9300 - 1.0475                               


1100CT Angel.Teran@ams.usda.gov 608-557-7006
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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