MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  October 20, 2016 (REPORT 42)                       

NONFAT DRY MILK - WEST                                           

F.O.B. spot prices for low/medium heat nonfat dry milk (NDM) are 
mixed on light trading. At this point, the market undertone is 
unsettled. Some buyers are holding off their purchases in order 
to get lower prices. On the other hand, some end users want to 
settle Q1 2017 contracts in anticipation of prices going higher. 
Meanwhile, some processors sustain that NDM prices will increase 
in the near future as demands from bakers and cheese makers are 
getting stronger. Low/medium heat NDM drying schedules are 
active in most processing plants as heavy milk volumes continue 
clearing into dryers. Inventories are readily available in the 
market. Prices for high heat nonfat dry milk are steady. 
Processing is irregular, based on contractual requirements.  
Inventories are tight. As a consequence, spot trading is light. 


F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:    .8175 -  .9850   MOSTLY:   .9000 - .9550      
HIGH HEAT:          .9900 - 1.1050                               


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