MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  February 23, 2017 (REPORT 8)                       

NONFAT DRY MILK - WEST                                           

F.O.B. spot prices for western low/medium heat nonfat dry milk (NDM) 
are mixed. However, prices in the mostly series rage are down, 
following downward trends on various indices. This week, most sales 
are based on Q1 contracts, while spot trading is light. There is a 
lot of uncertain in the market. Many buyers are taking a wait and see 
attitude, trying to understand what is happening in the market. 
Meanwhile, some consumers continue to put pressure on NDM sellers in 
order to get lower prices. Mexican buyers are also cautious over 
trade policies and currency. NDM demand from Mexico is sluggish. Back 
to the U.S., some processors are trying to clear NDM inventories 
ahead of the upcoming spring flush. Thus, there are sufficient spot 
offers from manufacturers to traders/buyers at competitive prices. 
With large condensed skim intakes clearing into dryers, low/medium 
heat NDM production is ongoing. As a result, inventories are 
building. High heat nonfat dry milk prices are steady to lower. A few 
spot loads pulled down the top of the range, in line with low/medium 
heat NDM descending price movements. Production is sporadic, mostly 
dictated by contractual needs. Inventories in the spot market are 
limited, but are in balance to cover contract requirements.

F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:     .8150 - 1.0300   MOSTLY:   .9300 - .9850     
HIGH HEAT:          1.0500 - 1.1450     


1100CT Angel.Teran@ams.usda.gov 608.422.8593
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