MD_DA640 DA MD DA640 Nonfat Dry Milk - West MADISON, WI. October 06, 2016 (REPORT 40) NONFAT DRY MILK - WEST F.O.B. spot prices for low/medium heat nonfat dry milk (NDM) are mixed on the range and mostly series. Trading activity in the spot market is light to moderate. The market undertone continues to be strong for many manufacturers, but uncertain according to some buyers/end users. NDM usage for cheese fortification is active. The demand from bakers is fair to good. Low/medium heat NDM processing is ongoing in many plants as moderate to heavy condensed skim loads continue clearing into dryers. However, a few processing plant operators are curtailing production as they have routine maintenance work scheduled on their dryers. Low/medium heat NDM inventories are steady throughout the region. Prices for high heat nonfat dry milk are steady to higher on a firmer market. Interest from bakers is active. Spot trading activity is very light as supplies continue to be very tight. The CME Group monthly average price for Grade A NDM during September was $0.9160, compared to $0.9045 a year ago. The September 2016 Dairy Market News monthly average for the West low/medium heat nonfat dry milk mostly series is $0.9281 compared to $.8425 a year ago. The average for Western high heat nonfat dry milk is $1.0105 compared to $.9185 a year ago. The NASS Dairy Products report noted U.S. human NDM production during August 2016 in the West region totaled 70.9 million pounds, 10.1 percent lower than one year ago. Total U.S. human NDM production during August 2016 was 116.7 million pounds, 5.8 percent lower than last year. During January- August 2016, U.S. human NDM production totaled 1198.3 million pounds, 8.2 percent less than the same period in 2015. Total U.S. NDM, human, month ending stocks for August were 234.7 million pounds, 1.5 percent above a year ago. F.O.B. WEST: Includes EXTRA GRADE and GRADE A LOW/MEDIUM HEAT: .8750 - 1.0200 MOSTLY: .9300 - .9700 HIGH HEAT: 1.0000 - 1.1000 U.S. NDM Exports, H.S. Code 0402100000(FAS) 2016 Exports % Change From (Million Lb.) 1 Year Ago August Total 116.0 + 23 TOTAL, JAN - AUG 790.8 - 4 1 Mexico 345.2 + 4 2 Philippines 113.7 + 10 3 Indonesia 78.6 + 17 4 Malaysia 35.7 - 12 5 Pakistan 34.7 - 16 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