MD_DA640 DA MD DA640 Nonfat Dry Milk - West MADISON, WI. December 08, 2016 (REPORT 49) NONFAT DRY MILK - WEST Western low/medium heat nonfat dry milk (NDM) prices are higher, in line with upward movements in various indices. Spot trading activity is light to moderate. At this point, there are mixed opinions about the market tone. According to some processors, the market is firming, as NDM supplies are tight and highly committed thru the end of the year. Manufacturers remain optimistic about futures prices, holding some stocks instead of selling. On the other end, some buyers/end users think the market is unsettled and they do not have major difficulties finding NDM supplies in the spot market. According to them, the weak demand from Mexico is increasing NDM availability in the domestic market. NDM production is slightly down as most condensed skim volumes have been used to cover Class II processing needs related to the upcoming holiday. Inventories are mixed throughout the region. High heat NDM prices shifted higher as inventories remain tight. Spot trading activity is very light. Production is sporadic, mainly based on contractual needs. The CME Group monthly average price for Grade A NDM during November was $0.8914, compared to $0.7822 a year ago. The November 2016 Dairy Market News monthly average for the West low/medium heat nonfat dry milk mostly series is $0.9333 compared to $.8138 a year ago. The average for Western high heat nonfat dry milk is $1.0303 compared to $1.0280 a year ago. The NASS Dairy Products report noted U.S. human NDM production during October 2016 in the West region totaled 83.0 million pounds, 14.4 percent higher than one year ago. Total U.S. human NDM production during October 2016 was 139.6 million pounds, 18.0 percent higher than last year. During January-October 2016, U.S. human NDM production totaled 1.465 billion pounds, 5.1 percent less than the same period in 2015. Total U.S. NDM, human, month ending stocks for October were 225.4 million pounds, 25.2 percent above a year ago. According to FAS, January-October U.S. NDM exports total 1,027 million pounds, 1% below last year during the same time span. F.O.B. WEST: Includes EXTRA GRADE and GRADE A LOW/MEDIUM HEAT: .9025 - 1.0500 MOSTLY: .9600 - .9800 HIGH HEAT: .9900 - 1.1200 U.S. NDM Exports, H.S. Code 0402100000(FAS) 2016 Exports % Change From (Million Lb.) 1 Year Ago October Total 125.6 + 14 TOTAL, JAN - OCT 1,026.6 - 1 1 Mexico 444.3 - 2 2 Philippines 154.0 + 26 3 Indonesia 95.3 + 26 4 Malaysia 46.5 + 2 5 Pakistan 45.3 - 8 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