MD_DA640 DA MD DA640 Nonfat Dry Milk - West MADISON, WI. April 06, 2017 (REPORT 14) NONFAT DRY MILK - WEST Western f.o.b. spot prices for low/medium heat nonfat dry milk (NDM) are lower on both the range and mostly price series. Price adjustments are following downward trends in variable contract indices while f.o.b. spot load prices moved lower, too. Spot trading activity is stagnant as the bulk of sales are based on contracts needs. Although cheese and ice cream makers are pulling several condensed skim loads, skim milk intakes clearing into dryers continue to be more than adequate. Thus, low/medium heat nonfat dry milk processing is ongoing, encouraged by increased regional farm milk production. With readily available NDM supplies in the spot market, buyers/traders are receiving several offers from manufacturers at competitive prices. However, looks like the interest for these offers is sluggish at this time. High heat nonfat dry milk prices are unchanged on light trading. Manufacturers report low demand outside of contract requirements. Several bakeries are receiving loads to complete orders for the upcoming spring holidays. Production is sporadic and stocks levels vary from plant to plant. The CME Group monthly average price for Grade A NDM during March was $0.8080, compared to $0.7413 a year ago. The March 2017 Dairy Market News monthly average for the West low/medium heat nonfat dry milk mostly series is $0.8578 compared to $.7433 a year ago. The average for Western high heat nonfat dry milk is $1.0467 compared to $.9708 a year ago. According to California Department of Food and Agriculture (CDFA), February 2017 nonfat dried milk (NDM) production in California totaled 49.3 million pounds, 6.2% lower than a year ago. From January through February 2017, NDM production totaled 102.8 million pounds, up 3.3% from the same period in 2016. The NASS Dairy Products report noted U.S. human NDM production during February 2017 in the West region totaled 85.1 million pounds, 4.4 percent lower than one year ago, and 11.5 percent below the previous month. Total U.S. human NDM production during February 2017 was 140.0 million pounds, 0.1 percent lower than last year. Total U.S. NDM, human, month ending stocks for February were 259.7 million pounds, 19.9 percent above a year ago. According to FAS, during February, U.S. NDM exports totaled 114.6 million pounds, 26% higher than a year ago. From January-February, U.S. NDM exports totaled 219.9 million pounds, 18% above last year during the same time span. F.O.B. WEST: Includes EXTRA GRADE and GRADE A LOW/MEDIUM HEAT: .7450 - .8800 MOSTLY: .8000 - .8550 HIGH HEAT: .9250 - 1.1000 U.S. NDM Exports, H.S. Code 0402100000(FAS) 2017 Exports % Change From (Million Lb.) 1 Year Ago February Total 114.6 + 26 TOTAL, JAN - FEB 219.9 + 18 1 Mexico 98.2 + 14 2 Philippines 26.9 - 16 3 Indonesia 18.0 + 47 4 Vietnam 12.2 + 59 5 China 11.8 + 97 1100CT AJ Ter n 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