MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  August 17, 2017 (REPORT 33)                        

NONFAT DRY MILK - WEST                                           

Prices for western low/medium heat nonfat dry milk (NDM) are lower at 
the bottom of the range and steady on the mostly price series. Some 
contacts say that sellers want to raise prices, but can't do so. In 
additional, they suggest that it is risky to try holding on to stocks 
as prices might not improve as hoped for. The market undertone is 
weakening. Production is steady to lower as milk output is decreasing 
in many regions. NDM is being used to fortify cheese in some 
manufacturing plants. However, supplies are still abundant. Domestic 
sales are steady. This week, most Mexican exports of NDM/SMP are 
increasing as Mexico is running short of farm milk. In addition, 
contacts suggest that most sales to Mexico are occurring at prices on 
the top of the range. Prices for western high heat nonfat dry milk 
remain steady compared to last week. Demand is quiet, and sales 
outside of contracts are light. Seasonal interest from bakers and 
mixed accounts is expected to develop beyond current demand in the 
short term. At the GDT Event 194 on August 15, 2017 skim milk powder 
(SMP) prices across all contract periods averaged $.8927 per pound, 
up 0.3% from the last event.

F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:    .7925 - .9300   MOSTLY:   .8800 - .9100      
HIGH HEAT:          .9800 - 1.0650                               

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