MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  September 22, 2016 (REPORT 38)                     

NONFAT DRY MILK - WEST                                           

F.O.B. spot prices for western low/medium heat nonfat dry milk (NDM) 
are higher, following upward movements of various indices. According 
to some market participants, the recent SMP pricing uptick at the GDT 
is helping to boost domestic NDM prices. Trading activity has been 
moderate throughout the week. The market undertone is firm. Compared 
to the previous week, the resale market is more active. Some 
buyers/end users continue pushing NDM manufacturers in order to drop 
prices. Meanwhile, some NDM processors are anticipating higher prices 
in the near future. Consequently, they are holding stocks in lieu of 
selling. Low/medium heat NDM demand from bakers is inching up as the 
fall baking season approaches. Also, NDM usage for cheese 
fortification is active. NDM production is ongoing as moderate 
condensed skim volumes continue clearing into dryers. Inventories are 
steady to slightly lower. F.O.B. spot prices for high heat nonfat dry 
milk are steady to higher on very light trading. Demand from the 
bakery sector is fair to good. Drying schedules are irregular in most 
processing plants as production is mostly based on contractual 
requirements. High heat NDM supplies continue tightening. 
 

F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:    .8650 - 1.0000   MOSTLY:   .9200 - .9500     
HIGH HEAT:          .9500 - 1.0700                               




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