MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  June 22, 2017 (REPORT 25)                          

NONFAT DRY MILK - WEST 

F.O.B. spot prices for Western low/medium heat nonfat dry milk (NDM) 
moved lower at the top of the range and both ends of the mostly price 
series. Some industry contacts report that the change in prices could 
be due to lower than expected sales into the Mexican market. A number 
of reports say that manufacturers and buyers are not finding a 
consensus on the price of NDM. Most buyers are hesitant to buy at 
prices in the top of the mostly price series, while processors are 
reluctant to sell at the bottom of the mostly price series. According 
to contacts in the industry, the market undertone is starting to 
stabilize. Demand is steady and mainly focused on fulfilling 
contracts. Spot trades are existent, but continue to be less 
frequent. Some end-users/buyers are delaying their purchase of NDM in 
the hope that prices will further decrease. Production is ongoing and 
more than enough for processing needs. Inventories are plentiful for 
some processors and balanced for others. High heat nonfat dry milk 
prices are steady at the bottom of the range and lower at the top. 
Sales are often contract based with minor opportunities for spot 
trades. Production is irregular, and inventories are tight. At the 
GDT Event 190 on June 20, skim milk powder (SMP) prices across all 
contract periods averaged $1.0061 per pound, up 1.4 percent from the 
last event.
                         
F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:    .8500 - .9700   MOSTLY:   .8800 - .9600      
HIGH HEAT:          .9800 - 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