MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  September 07, 2017 (REPORT 36)                        

NONFAT DRY MILK - WEST   

Prices for low/medium heat nonfat dry milk (NDM) are held steady on 
the range and the mostly price series. The market undertone is 
unsettled. Although some contacts report that production is 
decreasing, stocks remain high. There are less activities going on in 
the market as some buyers/end-users are only buying what they need. 
Competition with the European skim milk market is intense, while 
sales into Mexico are strong. High heat nonfat dry milk prices are 
steady at the bottom of the range, but slightly lower at the top. 
Contacts believe that manufacturers cannot afford to hold onto 
stocks, which is one of the reason why they are producing less high 
heat nonfat dry milk. Production is steady and continues to be 
directed toward fulfilling contractual demands. Spot sale activities 
are limited. The market undertone is firm. The CME Group monthly 
average price for Grade A NDM during August was $0.8491, compared to 
$0.8454 a year ago. The August 2017 Dairy Market News monthly average 
for the West low/medium heat nonfat dry milk mostly series is $0.8913 
compared to $0.8875 a year ago. The average for Western high heat 
nonfat dry milk is $1.0241 compared to $.9825 a year ago. The NASS 
Dairy Products report noted U.S. human NDM production during July 
2017 in the West region totaled 88.4 million pounds, 6.0 percent 
lower than one year ago, and 10.6 percent lower from the previous 
month. Total U.S. human NDM production during July 2017 was 148.4 
million pounds, down 1.6 percent from last year. Cumulative human NDM 
production from January to July was 1.1 billion pounds, 1.8 percent 
above the previous year. Total U.S. NDM, human, month ending stocks 
for July were 298.8 million pounds, 16.2 percent above a year ago. At 
the GDT Event 195 on September 5, 2017 skim milk powder (SMP) prices 
across all contract periods averaged $.8818 per pound, down 1.2% from 
the last event.

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