MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  March 02, 2017 (REPORT 9)                          

NONFAT DRY MILK - WEST                                           

In the West region, f.o.b. spot prices for low/medium heat nonfat dry 
milk (NDM) are lower on the range and mostly series. NDM futures 
values are noticeably down, too. Sales in the spot market are light 
to moderate. Some NDM customers are pushing back Q2 contract 
negotiations, anticipating lower prices on various indices in a few 
weeks. The current NDM lower prices are encouraging the interest from 
some WPC34% end users. However, the strong United States dollar and 
uncertainty over trade policies are discouraging NDM/SMP interest 
from Mexico. In the U.S., the NDM market undertone is steady to 
weaker as the current NDM supply is above buyers/end users' needs. 
With the beginning of spring flush and upcoming active NDM production 
season, some manufacturers are trying to reduce current holdings, 
selling at prices close to the bottom of the range. Although 
condensed skim demands from yogurt and ice cream makers are 
improving, condensed skim volumes are more than sufficient to keep 
balancing plants actively processing NDM and SMP. Low/medium heat 
inventories are steady to building. High heat nonfat dry milk prices 
are unchanged on light trading. Production is intermittent, driven by 
contractual requirements. In the spot market, high heat inventories 
are mixed, but are in balance to meet contract needs.

F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:     .7750 - 1.0200   MOSTLY:   .8800 - .9650     
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