MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  April 13, 2017 (REPORT 15)                         

NONFAT DRY MILK - WEST                                           

In the West region, f.o.b. spot prices for low/medium heat 
nonfat dry milk (NDM) are mixed on the range, but unchanged on 
the mostly series. The market undertone is steady. According to 
most industry participants, sales activity in the spot market 
has been very silent throughout the week. Some NDM processors 
indicate moderate inquiries from buyers/end users. However, NDM 
customers are interested in discounted offers. In this way, 
buyers continue putting pressure on the market in order to get 
lower prices. Demand for U.S. NDM/SMP from Mexico is slightly 
improving, as milk production in Mexico is declining due to a 
seasonal drought. Back to the U.S., many processors are actively 
drying condensed skim as volumes continue to increase prompted 
by heavy seasonal farm milk output. Low/medium heat inventories 
are steady to building. High heat nonfat dry milk prices are 
lower on light trading. Demand is sluggish, while the market 
undertone is steady to weak. Drying schedules in many processing 
plants are irregular as production is mostly driven by 
contractual needs. Inventories are mixed.

F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:    .7550 -  .8700   MOSTLY:   .8000 - .8550      
HIGH HEAT:          .8600 - 1.0225                               


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