MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  August 31, 2017 (REPORT 35)                        

NONFAT DRY MILK - WEST                                           

F.O.B prices for western low/medium heat nonfat dry milk (NDM) are 
mixed on the range and lower at the bottom of the mostly price 
series. Reports suggest that sellers are doing their best to hold 
prices up. They are also trying to determine the current direction of 
the market. On the other hand, buyers/end-users are waiting on the 
market. They are only buying NDM as needed. Domestic sales are less 
active. It was reported that most sales are made on contracts, and 
some people believe that NDM is over contracted. As the baking season 
approaches, demand is expected to improve soon. Requests from the 
Mexican market are strong. The competition between European skim milk 
powder merchants and domestic NDM sellers is intense. Production is 
active as more condensed skim goes to the dryers. NDM inventories are 
large, and some manufacturers are running out of storage spaces. High 
heat nonfat dry milk demand is strong while production is irregular. 
As the result, prices increased this week. Sales are mostly based on 
contractual obligations. Demand in the spot market is harder to 
fulfill.  

F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:     .7950 - .9200   MOSTLY:   .8600 - .9000      
HIGH HEAT:          1.0000 - 1.0700                              

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