MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI. June 1, 2017 (REPORT 22)                           

NONFAT DRY MILK - WEST

Western low/medium heat nonfat dry milk (NDM) prices converged higher 
with active f.o.b spot trading. The market undertone is mixed. The 
industry opinion of the market continues to be divided. Some 
manufacturers believe that the market is tightening. As a result, 
they are hedging CME prices by buying more NDM. Others continue to 
think the opposite;as so, they are clearing their NDM at current 
prices believing that prices will stabilize at lower level soon. 
Domestic buyers' activities are slow in the spot market and many 
people are purchasing based on near-term needs. A few contacts 
suggest that sales to Mexico, China, and the Southeastern markets 
have strengthened lately. Inventories of NDM are plentiful; however, 
a number of producers report having lower supplies. Production is 
steady to declining since many processors are making NDM to order and 
selling condensed skim to ice cream makers. High heat nonfat dry milk 
prices shifted higher on the range, following higher priced indices. 
The market undertone is holding steady. Sales are limited outside of 
contracts. Inventories are minimal due to many processors working 
first on fulfilling contracts with little excess produced. A number 
of contacts indicate that some producers are buying and stocking high 
heat nonfat dry milk for the summer as they think it may run out.   

F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:    .8700 - 1.0000   MOSTLY:   .9200 - .9700     
HIGH HEAT:          .9700 - 1.0900                               

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