MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  February 16, 2017 (REPORT 7)                       

NONFAT DRY MILK - WEST                                           

Western low/medium heat nonfat dry milk (NDM) f.o.b. spot prices are 
lower, showing signs of a bearish market. NDM futures values for Q2 
contracts are also down. There are plenty of offers from processors 
and traders, but buyers' interest looks to be light to moderate. Some 
buyers/end users are taking a wait and see approach, putting pressure 
on the market to get lower prices. Meanwhile, some manufacturers are 
clearing stocks from 2016 ahead of the spring flush, selling NDM at 
prices close to the bottom of the range. Mexican buyers have been 
quiet, analyzing SMP tenders from other international manufacturers 
outside the U.S. The strong U.S. dollar is making NDM/SMP imports 
from U.S. to Mexico more expensive, and less attractive. Recently, 
the Mexican government bought 15,000 MT of SMP from Europe. Back to 
the U.S., low/medium heat NDM production is ongoing throughout the 
West region. Most balancing plant managers are diverting condensed 
buttermilk away from the dryers, prioritizing NDM production. In 
turn, low/medium heat NDM supplies are building. High heat nonfat dry 
milk prices are lower, in line with low/medium heat NDM pricing 
downward movements. Drying schedules for high heat NDM are irregular 
as processors are placing emphasis on NDM/SMP production. Inventories 
in the spot market are mixed.


F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:     .8450 - 1.0200   MOSTLY:   .9500 - 1.0000    
HIGH HEAT:          1.0500 - 1.1550                              


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