MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  January 05, 2017 (REPORT 1)                        

NONFAT DRY MILK - WEST                                           

Western low/medium heat nonfat dry milk (NDM) f.o.b. prices are 
mixed as the bottom price of the range and mostly series shifted 
up, but the top held steady. At this point, the market undertone 
is steady to firmer. Most regional balancing plants were 
actively processing NDM over the past holiday weekend into the 
first half of the current week. Therefore, inventories are 
steady to higher, but are highly committed to cover Q1 contract 
needs. Consequently, offers from manufacturers are limited in 
the spot market and trading activity has been light throughout 
the week. Domestic demand from the food-processing sector is 
fair to good. In addition, the demand from Mexico is improving. 
High heat nonfat dry milk prices are unchanged on light trading. 
Production is sporadic, mostly based on contractual needs. 
Inventories are very tight. The CME Group monthly average price 
for Grade A NDM during December was $1.0019, compared to $0.7685 
a year ago. The December 2016 Dairy Market News monthly average 
for the West low/medium heat nonfat dry milk mostly series is 
$0.9907 compared to $.7662 a year ago. The average for Western 
high heat nonfat dry milk is $1.0797 compared to $.9870 a year 
ago. According to California Department of Food and Agriculture 
(CDFA), November 2016 nonfat dried milk (NDM) production in 
California totaled 38.6 million pounds, 19.5% lower than a year 
ago. From January through November 2016, NDM production totaled 
513.8 million pounds, down 20.8% from the same period in 2015. 

F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:     .9650 - 1.0700   MOSTLY:   1.0000 - 1.0500   
HIGH HEAT:          1.0550 - 1.1650                              



1100CT Angel.Teran@ams.usda.gov 608-557-7011
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