MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  January 19, 2017 (REPORT 3)                        

NONFAT DRY MILK - WEST                                           

Western low/medium heat nonfat dry milk (NDM) f.o.b. prices are mixed 
on the range, but steady on the mostly series. Most balancing plants 
were running at full capacity during the last holiday weekend. This 
week, production remains strong as plant managers are focusing on 
converting heavy condensed skim loads into NDM and SMP. Therefore, 
inventories are steady to building. In this way, tenders from 
manufacturers and second tier parties are becoming more available in 
the spot market. For some processors the NDM market will continue 
firming up. However, some buyers/end users remain puzzled about the 
recent NDM pricing upward trends, as supplies are readily available. 
NDM usage for cheese fortification is active. In addition, the 
domestic demand is expected to improve in the short term, as the 
spring baking season approaches. Prices for high heat nonfat dry milk 
are steady to higher. Production is active in a few plants in order 
to meet Q1 contract needs. Inventories are less tight than last week, 
but spot trading continues to be light. 

F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:     .9775 - 1.1000   MOSTLY:   1.0200 - 1.0700   
HIGH HEAT:          1.0550 - 1.1700                              




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