MD_DA640 DA MD DA640 Nonfat Dry Milk - West MADISON, WI. November 10, 2016 (REPORT 45) NONFAT DRY MILK - WEST Western low/medium heat nonfat dry milk (NDM) f.o.b. spot prices are mixed on the range and mostly series. For most industry contacts, the market undertone remains somewhat quiet and unsettled. According to some processors, the domestic demand is fair, but sluggish from Mexico. Many brokers, buyers, and end users are receiving enough offers from manufacturers. However, some buyers/end users are postponing purchases, expecting lower prices in the near future. Meanwhile, a few manufacturers and resellers are trying to clear aged inventories, selling at prices close to the bottom of the range. Less condensed skim volumes are clearing into dryers as requests from Class II/III processors are improving ahead of the year-end holidays. Therefore, low/medium heat NDM production is steady to slightly lower. However, inventories are readily available in the spot market. High heat nonfat dry milk prices are steady to slightly lower on light trading. Some processors are producing more high heat in order to cover current contractual needs. Inventories remain tight. The CME Group monthly average price for Grade A NDM during October was $0.8852, compared to $0.9333 a year ago. The October 2016 Dairy Market News monthly average for the West low/medium heat nonfat dry milk mostly series is $0.9334 compared to $.9326 a year ago. The average for Western high heat nonfat dry milk is $1.0510 compared to $1.0456 a year ago. The NASS Dairy Products report noted U.S. human NDM production during September 2016 in the West region totaled 81.7 million pounds, 0.2 percent higher than one year ago. Total U.S. human NDM production during September 2016 was 125.6 million pounds, 4.7 percent higher than last year. During January-September 2016, U.S. human NDM production totaled 1.324 billion pounds, 7.0 percent less than the same period in 2015. Total U.S. NDM, human, month ending stocks for September were 216.1 million pounds, 2.1 percent above a year ago. According to FAS, January- September U.S. NDM exports total 901.0 million pounds, 3% below last year during the same time span. F.O.B. WEST: Includes EXTRA GRADE and GRADE A LOW/MEDIUM HEAT: .8050 - .9700 MOSTLY: .9000 - .9500 HIGH HEAT: .9550 - 1.0950 U.S. NDM Exports, H.S. Code 0402100000(FAS) 2016 Exports % Change From (Million Lb.) 1 Year Ago September Total 110.3 + 6 TOTAL, JAN - SEP 901.0 - 3 1 Mexico 393.4 -- 2 Philippines 129.4 + 14 3 Indonesia 88.9 + 25 4 Malaysia 42.3 - 3 5 Pakistan 38.2 - 18 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