MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  September 15, 2016 (REPORT 37)                     

NONFAT DRY MILK - WEST                                           


Western f.o.b. spot prices for low/medium nonfat dry milk (NDM) are 
mixed on the range, but higher on the mostly series. The market 
undertone is firmer. Compared to the previous week, sales volumes in 
the spot market are slightly higher. According to industry 
participants, some buyers/end users want to settle Q4 contracts in 
anticipation of prices going higher. Some NDM manufacturers are not 
hesitant to hold stocks, expecting better prices in the next few 
weeks. NDM sales into cheese plants for fortification purposes are 
active. In addition, demand from bakers is improving as the fall 
baking season approaches. The availability of condensed skim volumes 
for drying is increasing, as the requests from ice cream 
manufacturers are lower. Consequently, low/medium heat NDM processing 
is steady to higher. Inventories are mixed throughout the West. 
F.O.B. spot prices for high heat nonfat dry milk shifted higher on 
the bottom of the range, but held steady on the top. Production is 
sporadic, based on contracts. Inventories are very tight. Thus, 
trading activity in the spot market is limited.


F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:    .8400 -  .9800   MOSTLY:   .9050 - .9350      
HIGH HEAT:          .9500 - 1.0600                               






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