MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI. June 8, 2017 (REPORT 23)                           

NONFAT DRY MILK - WEST

F.o.b prices for Western low/medium heat nonfat dry milk (NDM) prices 
shifted upward at the bottom of the price range and the top of the 
mostly price series. The market undertone is weak. Contacts report 
that most sales are made in the mid $.90s, and buyers are showing 
some resistance for prices in the high $.90s. Others believe that 
prices are about to stabilize. Inventory levels are mixed depending 
on the sellers. Some processors report lower inventories, while 
others have steady to abundant stocks. A presence of 8-9 months 
inventories was noted in some plants. However, supplies are rotating 
as newer stocks add up. Production is a little over seasonal levels. 
Demand is steady to slowing down. Contacts reveal that the demand for 
RBST free NDM is increasing. Overall, sales continue to be largely 
based on contracts. Trading activities in the spot market is 
moderate. High heat nonfat dry milk prices are higher on the upper 
end of the price range and steady on the lower end. The market 
undertone is firming. Production is irregular, mostly aimed at 
meeting upcoming contractual needs. Supplies at most manufacturing 
plants are tight and demand is unchanged from last week. The CME 
Group monthly average price for Grade A NDM during May was $0.8888, 
compared to $0.7880 a year ago. The May 2017 Dairy Market News 
monthly average for the West low/medium heat nonfat dry milk mostly 
series is $0.8882 compared to $0.7739 a year ago. The average for 
Western high heat nonfat dry milk is $1.0041 compared to $.9098 a 
year ago. The NASS Dairy Products report noted U.S. human NDM 
production during April 2017 in the West region totaled 102.4 million 
pounds, 3.6 percent lower than one year ago, but 9.2 percent higher 
from the previous month. Total U.S. human NDM production during April 
2017 was 170.9 million pounds, unchanged from last year. Cumulative 
human NDM production from January to April was 625.4 million pounds, 
0.3 % above the previous year. Total U.S. NDM, human, month ending 
stocks for April were 266.3 million pounds, 5.6 percent above a year 
ago. According to FAS, during April, U.S. NDM exports totaled 122.5 
million pounds, 20% higher than a year ago. From January-April, U.S. 
NDM exports totaled 449.0 million pounds, 19% above last year during 
the same time span. At the GDT Event 189 on June 6, skim milk powder 
(SMP) prices across all contract periods averaged $.9780 per pound, 
up 7.9% from the last event.

F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:    .8900 - 1.0000   MOSTLY:   .9200 - .9850     
HIGH HEAT:          .9700 - 1.1050                               

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