MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  December 01, 2016 (REPORT 48)                      

NONFAT DRY MILK - WEST                                           

Prices for western low/medium heat nonfat dry milk (NDM) shifted 
higher, following upward trends in various indices. For most NDM 
manufacturers, the market tone is stable to firming. On the other 
hand, market conditions are unsteady for many buyers/end users. 
Trading activity in the spot market is light to moderate. According 
to some processors, demand from Mexico is weak as there are adequate 
supplies to meet buyer needs in this country. Back to United States, 
NDM production is active as moderate to heavy condensed skim volumes 
continue clearing into dryers. Overall, inventories are readily 
available in the market. Prices for high heat NDM are slightly higher 
on a steady market. Buyers' interest for high heat NDM is active, 
mainly driven by year-end holiday needs. Production is irregular, but 
supplies are sufficient to meet current contracts necessities. 
According to California Department of Food and Agriculture (CDFA), 
October 2016 nonfat dried milk (NDM) production in California totaled 
43.9 million pounds, 3.6% lower than a year ago. From January through 
October 2016, NDM production totaled 475.2 million pounds, down 21.0% 
from the same period in 2015. 

F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:    .8650 - 1.0000   MOSTLY:   .9500 - .9700     
HIGH HEAT:          .9775 - 1.1000                               


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