MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  June 15, 2017 (REPORT 24)                          

NONFAT DRY MILK - WEST                                           

In the West region, f.o.b. spot prices for low/medium heat nonfat dry 
milk (NDM) adjusted slightly down on both the range and mostly 
series. The spot sales activity has been moderate throughout the 
week. Industry participants have different thoughts about the NDM 
market conditions. According to some buyers/end users, NDM values 
decreased due to the high supply availability in the spot market. On 
the other hand, some processors claim that the NDM market is firm and 
prices declined as some manufacturers had to adjust prices to be more 
competitive in the domestic market. In addition, some NDM producers 
are holding stocks ahead of higher futures values. According to them, 
NDM futures will rise to about $1 per pound during Q3 and Q4. The 
domestic NDM demand from bakers is steady, but active from cheese 
processors. With expectations that NDM prices will rise in the short 
term, some cheese processors are buying now and stocking. Meanwhile, 
the NDM/SMP demand from Mexico is fair to good. Low/medium heat NDM 
production is less active as regional farm milk intakes are 
seasonally decreasing. In general, NDM inventory levels vary 
throughout the region. Prices for high heat nonfat dry milk are mixed 
on a narrower range. Sales activity outside contracts is light. 
Production is intermittent based on filling near-term contractual 
obligations between parties. Inventories are slightly tight in the 
f.o.b. spot market, but in balance to cover contractual needs. 

F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:    .8500 -  .9800   MOSTLY:   .9000 - .9650      
HIGH HEAT:          .9800 - 1.1000                               

1100CT 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