MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI. May 18, 2017 (REPORT 20)                           

NONFAT DRY MILK - WEST                                           

In the West, low/medium heat nonfat dry milk (NDM) f.o.b. spot prices 
shifted up. NDM values are tracking upward pricing movements of 
various indices and offshore auctions. Spot trading activity is light 
to moderate. Industry participants have different thoughts about the 
current NDM market conditions. According to some buyers/end users, 
NDM prices are increasing without any economic foundation as the 
current supply is above buyers' interest. Furthermore, a few 
producers are clearing 5-9 month old inventories at prices close to 
the bottom of the range. Meanwhile, some processors believe the 
market is gaining ground based on higher NDM values in futures 
markets and higher international demand. Therefore, some NDM 
processors are still stocking with expectations to sell at higher 
prices in the short term. In fact, the stocks of some manufacturers 
are committed to new contracts starting in June and throughout Q3. 
Low/medium heat NDM production is active as many processors are 
focusing on clearing large regional condensed skim volumes. Prices 
for high heat nonfat dry milk are mixed as a few spot sales pulled 
slightly down the low end of the pricing range. Trading is light, 
outside contracts. Production is intermittent, mostly based on 
filling near-term contractual requirements. Inventories are slightly 
tight in the f.o.b. spot market, but in balance to meet contract 
needs.

F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:    .8275 -  .9300   MOSTLY:   .8800 - .9000      
HIGH HEAT:          .9300 - 1.0575                               


1100CT AJ Teran 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