MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  February 02, 2017 (REPORT 5)                       

NONFAT DRY MILK - WEST                                           

Western low/medium heat nonfat dry milk (NDM) prices are mostly lower 
on an unsettled market. Spot trading has been light throughout the 
week. Demand from bakers is active as the spring baking season 
approaches. In addition, some Class III (Class 4b) processors are 
actively using NDM for cheese fortification. In most balancing 
plants, large condensed skim intakes, prompted by strong regional 
farm milk output, continue clearing into dryers. As a result, 
low/medium heat NDM production is ongoing, while inventories are 
steady to building. Prices for western high heat nonfat dry milk are 
mixed on a narrower range. Production is sporadic, mainly dictated by 
contractual needs. Outside contracts, inventories are tight. As a 
result, spot trading has been very light throughout the week. 
According to California Department of Food and Agriculture (CDFA), 
December 2016 nonfat dried milk (NDM) production in California 
totaled 53.4 million pounds, 0.7% higher than a year ago. From 
January through December 2016, NDM production totaled 567.2 million 
pounds, down 19.2% from the same period in 2015. 

F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:     .8900 - 1.0550   MOSTLY:   .9800 - 1.0300    
HIGH HEAT:          1.0900 - 1.1750                              



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