MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI. May 25, 2017 (REPORT 21)                           

NONFAT DRY MILK - WEST                                           

Low/medium heat nonfat dry milk (NDM) f.o.b. spot prices moved higher 
on both the range and the mostly series. Although the market 
undertone seems to be stable, industry participants have a split view 
of the current market condition. Some industry contacts report that 
the market is tight and firming up. They are even buying extra loads 
of NDM to hedge against future increases in prices, as they are 
expecting prices to further move up. Others believe that there are 
more than sufficient supplies of NDM in the market to meet current 
demand, and current prices are higher than they should be. Low/medium 
heat NDM production is ongoing and supplies are enough to meet 
contractual demands. A few processors are moving their production 
from medium heat to low heat NDM this week. Spot trades are light. 
Ice cream processors are busy pulling condensed skim volumes in view 
of the upcoming summer. Prices for high heat nonfat dry milk shifted 
upward on both ends of the range. Inventories are mostly very tight, 
geared toward meeting contractual requirements, and spot trades are 
seldom. Production is irregular and tied to near-term contracts. 
Demand is steady.   

At the GDT Event 188 on May 16, skim milk powder (SMP) prices across 
all contract periods averaged $.9063 per pound, up 1.0% from the last 
event.

F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:    .8450 - .9600   MOSTLY:   .9000 - .9400      
HIGH HEAT:          .9400 - 1.0850                               

1100CT 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