MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  April 27, 2017 (REPORT 17)                         

NONFAT DRY MILK - WEST                                           

Western f.o.b. spot prices for low/medium heat nonfat dry milk (NDM) 
shifted slightly higher on the top of the range and the bottom of the 
mostly series, following upward trends of various indices. At this 
point, the market undertone is mixed. The current NDM values surprise 
some industry participants, as NDM supplies remain high and are 
readily available in the f.o.b. spot market. In this way, some NDM 
buyers/end users are taking a wait and see approach, anticipating 
lower prices in the short term. On the other hand, some manufacturers 
believe that the market is balanced and are optimistic about future 
values. Sales outside contracts have been light throughout the week. 
Low/medium NDM output is ongoing as heavy condensed skim volumes 
continue clearing into dryers. Inventories are generally steady to 
building. 

High heat nonfat dry milk prices are mixed as some spot sales pushed 
up the bottom of the range. The market undertone is unsettled. Demand 
from dry mix processors is active, but is weak from bakers. High heat 
processing is irregular, mostly driven by current contractual 
requirements. Inventories are in balance with contractual needs, but 
slightly tight in the spot market.

According to California Department of Food and Agriculture (CDFA), 
March 2017 nonfat dried milk (NDM) production in California totaled 
49.0 million pounds, 25.6% lower than a year ago. From January 
through March 2017, NDM production totaled 151.8 million pounds, down 
8.2% from the same period in 2016. 

 

F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:    .7900 -  .9000   MOSTLY:   .8200 - .8600      
HIGH HEAT:          .9300 - 1.0325                               
 

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-
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