MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  May 11, 2017 (REPORT 19)                           

NONFAT DRY MILK - WEST  

Western low medium heat nonfat dry milk (NDM) f.o.b spot prices are 
mixed as some spot sales pulled up the bottom of the range and mostly 
series. Spot sales activity is light to moderate. At this point, the 
market undertone is uncertain for many industry participants. Some 
manufacturers think the market is firming and are holding some 
stocks, anticipating higher prices in the near future. This is 
decreasing the spot availability of NDM in some areas of the region. 
Meanwhile, some buyers/end users remain baffled about current NDM 
price trends. According to them, NDM supplies are readily available 
in the market and prices should be lower. NDM production is ongoing, 
as moderate to large condensed skim volumes are clearing into the 
dryers. In general, inventories are adequate to building in most 
processing plants. High heat nonfat dry milk spot prices are mixed as 
a few sales pulled slightly up the top of the range. Production is 
steady and in line with contractual requirements. Spot sales are 
seldom and inventories remain tight in the spot market.

The NASS Dairy Products report noted U.S. human NDM production during 
March 2017 in the West region totaled 93.8 million pounds, 13.3 
percent lower than one year ago, but 10.3 percent higher from the 
previous month. Total U.S. human NDM production during March 2017 was 
159.7 million pounds, 7.2 percent lower than last year. Cumulative 
human NDM production from January to March was 454.5 million pounds, 
0.4 % above the previous year. Total U.S. NDM, human, month ending 
stocks for March were 247.0 million pounds, 6.4 percent above a year 
ago. 

According to FAS, during March, U.S. NDM exports totaled 106.7 
million pounds, 18% higher than a year ago. From January-March, U.S. 
NDM exports totaled 326.6 million pounds, 18% above last year during 
the same time span.

F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:    .8000 - .9000   MOSTLY:   .8500 - .8800      
HIGH HEAT:          .9450 - 1.0575                               

U.S. NDM Exports, H.S. Code 0402100000(FAS)
                 2017 Exports      % Change From 
                 (Million Lb.)       1 Year Ago

March Total            106.7           + 18

TOTAL, JAN - MAR       326.6           + 18
 1 Mexico              148.1           + 17
 2 Philippines          32.3           - 26
 3 China                22.4           + 172
 4 Indonesia            19.0           + 24
 5 Malaysia             16.8           + 83


1100CT AJ Ter n Angel.Teran@ams.usda.gov 608.422.8593
Florence.KoneGonzalez@ams.usda.gov 608.422.8594
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