MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  August 24, 2017 (REPORT 34)                        

NONFAT DRY MILK - WEST                                           

In the West, prices for low/medium heat nonfat dry milk (NDM) are 
mixed on both the range and mostly series. The current market 
situation is unsteady. For several industry contacts, there is no 
expectation of an increase in NDM prices for the rest of the year. In 
fact, NDM futures settled relatively steady below 90 cents per pound 
for Q3 and Q4. On the other hand, a few processors think that NDM 
values will improve in the near term, as the baking season is close. 
NDM production is ongoing as moderate to heavy condensed skim volumes 
continue clearing into dryers. NDM inventories are steady to 
building. Meanwhile, the U.S. SMP/NDM demand from Mexico is strong as 
manufacturing milk intakes in that country are steadily decreasing. 
Back to the U.S., high heat NDM manufacturing is irregular, driven by 
contractual requirements. Prices are steady to lower, following 
low/medium heat NDM pricing trends. 

F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:    .7725 -  .9300   MOSTLY:   .8800 - .9000      
HIGH HEAT:          .9800 - 1.0600                               

1100CT AJ Teran 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