MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  October 27, 2016 (REPORT 43)                       

NONFAT DRY MILK - WEST                                           

Western low/medium heat nonfat dry milk (NDM) f.o.b. spot prices 
are mixed on the range and the mostly series. Manufacturers and 
buyers agree that sales activity in the spot market has been 
light throughout the week as most sales have been based on 
contracts. At this time, the market tone is uncertain. 
Buyers/end users are putting pressure on manufacturers, holding 
purchases, and taking a wait and see approach, anticipating 
lower prices. However, processors are optimistic about future 
prices. Low/medium heat NDM inventories from recent production 
are readily available. Also, some processors are trying to clear 
old stocks with some age at prices close to the bottom of the 
range. Production is ongoing as moderate to heavy condensed skim 
volumes continue clearing into dryers. High heat nonfat dry milk 
prices are higher on the bottom of the range, but steady on the 
top. Production is sporadic, mostly based on contractual needs. 
Trading is light as supplies are tight. According to California 
Department of Food and Agriculture (CDFA), September 2016 nonfat 
dried milk (NDM) production in California totaled 41.8 million 
pounds, 14.2% lower than a year ago. From January through 
September 2016, NDM production totaled 431.3 million pounds, 
down 22.4% from the same period in 2015. 


F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:     .8100 -  .9900   MOSTLY:   .9000 - .9500      
HIGH HEAT:          1.0200 - 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