MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  September 21, 2017 (REPORT 38)                     

NONFAT DRY MILK - WEST                                           

Western f.o.b. spot prices for low/medium heat nonfat dry milk (NDM) 
are mixed on both the range and mostly series. Sales activity has 
been moderate throughout the week. Some industry contacts report that 
the NDM supply is ample, above the current demands from buyers and 
end users. However, according to some processors, NDM premiums are 
likely to improve in the near term, as the baking season is getting 
close. Therefore, some NDM manufacturers are not hesitant to hold 
stocks, expecting better prices in the next few weeks. Some NDM 
customers are setting Q4 contracts in anticipation of prices going 
higher. Meanwhile, NDM sales into cheese plants for fortification 
purposes are active. NDM production is ongoing as ice cream 
manufacturers are requesting less condensed skim volumes. Therefore, 
there are more condensed milk intakes clearing into dryers. NDM/SMP 
exports to Mexico are strong as there is a lack of inventories in 
that country. 

In the U.S., f.o.b. spot prices for high heat nonfat dry milk are 
unchanged from last week on light trading. Demand from the bakery 
sector is fair to good. Drying schedules are irregular as production 
is mostly based on contractual requirements. High heat NDM supplies 
vary from plant to plant.


F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:     .7900 -  .9100   MOSTLY:   .8500 - .8700      
HIGH HEAT:          1.0000 - 1.0650                              
                     
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