MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  September 29, 2016 (REPORT 39)                     

NONFAT DRY MILK - WEST                                           

Western f.o.b. spot prices for low/medium heat nonfat dry milk (NDM) 
are higher on light to moderate trading. The market undertone 
continues to be firm. Some manufacturers prefer to hold stocks at 
this point, anticipating higher prices in the near future. Meanwhile, 
some brokers and end users are taking a wait and see attitude, 
pushing processors in order to drop prices. NDM demands from bakers, 
cheese makers and dry mix manufacturers are active. International 
interest, especially from Mexico, is strong. Low/medium heat 
production is active as moderate condensed skim volumes continue 
clearing into dryers. Inventories are steady to slightly tight in 
many plants. High heat nonfat dry milk prices are higher. Production 
is irregular, mostly based on contractual needs. Demand from bakers 
is active as the fall holiday season approaches. Inventories continue 
tightening. Consequently, trading activity has been very light 
throughout the week. According to California Department of Food and 
Agriculture, August 2016 nonfat dried milk (NDM) production in 
California totaled 30.6 million pounds, 31.8% lower than a year ago. 
From January through August 2016, NDM production totaled 389.5 
million pounds, down 23.2% from the same period in 2015. 

F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:     .8800 - 1.0200   MOSTLY:   .9400 - .9700     
HIGH HEAT:          1.0000 - 1.0750                              





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