MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  July 13, 2017 (REPORT 28)                          

NONFAT DRY MILK - WEST                                           

In the western region, f.o.b. spot prices for low/medium heat nonfat 
dry milk (NDM) are mostly mixed on a narrower range. NDM values are 
more in line with the current large supply available in the market, 
according to some buyers/end users. Meanwhile, some processors are 
anticipating higher NDM futures values as production is expected to 
decrease during the rest of the summer season. At this point, the 
market undertone is unsettled. Spot sales transactions have been 
active throughout the week. NDM production is active, but at a lower 
output rate, compared to a few weeks ago, mainly due to lower farm 
milk intakes in the Southwest region. Low/medium heat inventories are 
sufficient to meet both contractual and spot needs.
High heat NDM prices are unchanged on light trading. Production is 
limited, mostly driven by contractual requirements. Inventories are 
mixed throughout the region.

The NASS Dairy Products report noted U.S. human NDM production during 
May 2017 in the West region totaled 97.6 million pounds, 5.2 percent 
higher than one year ago, but 4.6 percent lower from the previous 
month. Total U.S. human NDM production during May 2017 was 168.0 
million pounds, up 1.2 percent from last year. Cumulative human NDM 
production from January to May was 794.4 million pounds, 0.6 percent 
above the previous year. Total U.S. NDM, human, month ending stocks 
for May were 282.3 million pounds, 21.6 percent above a year ago. 

According to FAS, during May, U.S. NDM exports totaled 129.4 million 
pounds, 32 percent higher than a year ago. From January-May, U.S. NDM 
exports totaled 578.4 million pounds, 22 percent above last year 
during the same time span.

F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:    .8150 -  .9500   MOSTLY:   .8700 - .9200      
HIGH HEAT:          .9800 - 1.0600                               


U.S. NDM Exports, H.S. Code 0402100000(FAS)
                 2017 Exports      % Change From 
                 (Million Lb.)       1 Year Ago

May Total             129.4          + 32

TOTAL, JAN - MAY       578.4           + 22
 1 Mexico              266.9           + 25
 2 Philippines          66.1           - 15
 3 China                39.9           + 148
 4 Indonesia            29.5           - 11
 5 Malaysia             27.8           + 40





1100CT AJ Teran Angel.Tran@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