MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  March 23, 2017 (REPORT 12)                         

NONFAT DRY MILK - WEST                                           

Western low/medium heat nonfat dry milk (NDM) f.o.b. spot prices are 
mixed on both the range and mostly price series. The market undertone 
remains weak as the NDM supply is above current buyers' demand. 
Regional spot trading is light as many NDM sales are based on Q1 
contracts. Some industry participants are under contract negotiations 
for Q2. Meanwhile, several buyers/end users are content with delaying 
purchases, anticipating lower prices in the short term. Regional NDM 
production is ongoing, prompted by seasonally higher farm milk 
intakes. Several loads of condensed skim are clearing into Class II 
and Class III seasonal processing needs. However, condensed skim 
supplies for NDM manufacturing are more than adequate, keeping 
several balancing plants running at full capacity. Low/medium heat 
NDM inventories are readily available in the spot market with ample 
offers from manufacturers to traders. NDM/SMP demand from Mexico is 
light as several Mexican customers are buying SMP from Canada at very 
competitive prices. In the U.S., high heat NDM prices are lower on 
light trading. High heat NDM production is slightly up in order to 
meet costumers' needs for the upcoming spring holidays. High heat NDM 
stocks are available for near-term contracted commitments. 


F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:    .7500 -  .9000   MOSTLY:   .8100 - .8650      
HIGH HEAT:          .9500 - 1.0725                               



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