MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  July 6, 2017 (REPORT 27)                          

NONFAT DRY MILK - WEST 

F.O.B spot prices for Western low/medium heat nonfat dry milk (NDM) 
moved lower on the bottom of the price range and stayed steady on the 
mostly price series. A number of processors are trying their best to 
sell their NDM at the top of the price range. Inventories are fair to 
plentiful in most parts of the West. However, some contacts report 
that in California, some manufacturers have limited stocks of NDM and 
the ones who have a decent supply are holding on to it. Production is 
active; however, it is expected to start declining as the summer 
advances. Industry contacts suggest that during the Fourth of July 
holiday, buying slowed down a little bit. Contracts are being 
fulfilled as planned, and spot sales are steady. The market undertone 
is weak, but starting to settle. Prices for high heat nonfat dry milk 
moved slightly down on the top of the price range, but remain 
constant on the bottom. Supplies are still tight and mostly geared 
toward fulfilling contractual needs. Production is light as priority 
is given to low/medium heat nonfat dry milk manufacturing. The market 
tone is fairly balanced. The CME Group monthly average price for 
Grade A NDM during June was $0.8902, compared to $0.8476 a year ago. 
The June 2017 Dairy Market News monthly average for the West 
low/medium heat nonfat dry milk mostly series is $0.9257 compared to 
$0.8209 a year ago. The average for Western high heat nonfat dry milk 
is $1.0340 compared to $.9491 a year ago. At the GDT Event 191 on July 
4, skim milk powder (SMP) prices across all contract periods averaged 
$0.9480 per pound, down 4.5 percent from the last event.

F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:    .8000 -  .9500   MOSTLY:   .8500 - .9300      
HIGH HEAT:          .9800 - 1.0600            


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