MD_DA640 DA MD DA640 Nonfat Dry Milk - West MADISON, WI. September 08, 2016 (REPORT 36) NONFAT DRY MILK - WEST F.O.B. spot prices for Western low/medium heat nonfat dry milk (NDM) are mixed on the range, but higher on the mostly series. Spot trading activity has been moderate throughout the week. The market undertone is firmer for many industry participants, but unsettled for others. According to some processors, the recent upward GDT price movement is boosting domestic prices. Consequently, some manufacturers are holding stocks instead of selling, anticipating higher prices in the next few weeks. Meanwhile, some buyers/end users continue pushing NDM producers to drop prices. Low/medium heat NDM demands from bakers and cheese makers are active. Moderate condensed skim volumes continue clearing into NDM processing. As a result, NDM production is ongoing and inventories are slightly higher. F.O.B. spot prices for high heat nonfat dry milk are steady on the bottom of the range, but higher on the top. Interest from the bakery sector is fair to good. Production is irregular, based on contractual requirements. High heat NDM supplies continue tightening. As a result, spot trading activity is light. The CME Group monthly average price for Grade A NDM during August was $0.8454, compared to $0.7329 a year ago. The August 2016 Dairy Market News monthly average for the West low/medium heat nonfat dry milk mostly series is $0.8875 compared to $.7121 a year ago. The average for Western high heat nonfat dry milk is $0.9825 compared to $0.8741 a year ago. The NASS Dairy Products report noted U.S. human NDM production during July 2016 in the West region totaled 94.1 million pounds, 7.1 percent lower than one year ago. Total U.S. human NDM production during July 2016 was 152.9 million pounds, 1.5 percent lower than last year. During January-July 2016, U.S. human NDM production totaled 1,083.6 million pounds, 8.2 percent less than the same period in 2015. Total U.S. NDM, human, month ending stocks for July were 250.6 million pounds, 7.2 percent below a year ago. The Foreign Agricultural Service (FAS) reports July 2016 U.S. exports of nonfat dry milk and milkfat totaled 105.8 million pounds, up 18% from a year ago. F.O.B. WEST: Includes EXTRA GRADE and GRADE A LOW/MEDIUM HEAT: .8425 - .9500 MOSTLY: .8900 - .9300 HIGH HEAT: .9300 - 1.0600 U.S. NDM Exports, H.S. Code 0402100000(FAS) 2016 Exports % Change From (Million Lb.) 1 Year Ago July Total 105.8 + 18 TOTAL, JAN - JULY 674.8 - 7 1 Mexico 289.2 - 1 2 Philippines 102.4 + 11 3 Indonesia 62.9 + 15 4 Pakistan 33.1 - 11 5 Malaysia 29.7 - 18 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-home