MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  March 16, 2017 (REPORT 11)                         

NONFAT DRY MILK - WEST                                           

In the West, f.o.b. spot prices for low/medium heat nonfat dry milk 
(NDM) are lower, in line with downward movement in various pricing 
indices and recent offshore auction results. The domestic market 
condition is unbalanced as the current heavy NDM supply is above the 
sluggish buyers/end users' demand. In order to mitigate the growth of 
NDM supplies over the spring flush, manufacturers are 
offering/selling several loads at lower prices near the bottom of the 
price range. Furthermore, some Class III processors are helping to 
clear several volumes of condensed skim milk as some balancing plants 
are operating at full capacity, without enough storage room for milk. 
NDM stocks continue building as on-farm milk production ramps up 
toward the flush. This week, NDM spot trading activity varies as some 
buyers/end users postpone purchases, waiting for lower prices in the 
short term. On the other hand, some customers are buying more NDM, 
taking advantage of the current cheaper values. At this point, the 
U.S. SMP pricing is very competitive, boosting the interest from some 
international customers such as Brazil. However, the Mexican NDM/SMP 
demand continues to be light due to currency matters and uncertainty 
on trade policies. Back to the U.S., high heat NDM prices are lower. 
Some larger operations are producing more high heat NDM this week, 
ahead of the spring holidays. Stocks on hand are generally sufficient 
for near term interest. Demand is at seasonal levels.

F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:    .7400 -  .9275   MOSTLY:   .8000 - .8800      
HIGH HEAT:          .9900 - 1.1150                               



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