MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  January 26, 2017 (REPORT 4)                        

NONFAT DRY MILK - WEST                                           

F.O.B spot prices for western low/medium heat nonfat dry milk (NDM) 
are lower on the range and mostly series. For some buyers/end users, 
the recent NDM spot pricing downward trend at the CME is starting to 
make sense with the market, as large supplies are readily available. 
Meanwhile, some manufacturers and brokers are anticipating a rebound 
in prices in the short term, as the typical high demand for spring 
season approaches. With lower NDM values, trading in the spot market 
is more active, compared to a few weeks ago. Some manufacturers' NDM 
offers from recent production can be found priced at or above the top 
price of the range. On the other hand, some processors are trying to 
clear 2016 NDM supplies, offering loads at prices close to the bottom 
of the range. Demand from the food processing industry is fair to 
good. Low/medium heat NDM production is active as many western 
balancing plants continue clearing large condensed skim volumes into 
dryers. Inventories are steady to building. Prices for western high 
heat nonfat dry milk are steady to higher on very light trading. 
Production is limited as balancing plant operators are busy 
converting condensed skim into low/medium heat NDM and SMP.

F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:     .9300 - 1.0700   MOSTLY:   1.0000 - 1.0500   
HIGH HEAT:          1.0900 - 1.1800                              



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