MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  October 05, 2017 (REPORT 40)                       

NONFAT DRY MILK - WEST                                           

      Western f.o.b. spot prices for low/medium heat nonfat dry milk 
(NDM) are mixed on the range and mostly series. During this week, 
spot sales transactions are more active compared to a few weeks ago. 
As reported by some processors, the demands from the bakery and 
confectionary sectors are improving ahead of the year-end holidays. 
Furthermore, several cheese makers continue pulling strong NDM loads 
for cheese fortification. The low/medium heat NDM market undertone is 
stable, as the NDM supply in line with the current buyers/end users 
needs. Production is ongoing as moderate to heavy condensed skim 
loads continue clearing into dryers, supported by seasonally higher 
regional farm milk output. Low/medium heat NDM inventories are 
readily available to meet most needs based on contacts and/or in the 
spot market. 
      Prices for high heat nonfat dry milk are steady to slightly 
down. Interest from bakers is active as the fall baking season 
approaches. Spot trading activity is irregular as production is 
mostly driven by Q4 contractual requirements.  
      The CME Group monthly average price for Grade A NDM during 
September was $0.8320, compared to $0.9160 a year ago. 
      The September 2017 Dairy Market News monthly average for the 
West low/medium heat nonfat dry milk mostly series is $0.8675 
compared to $0.9281 a year ago. The average for Western high heat 
nonfat dry milk is $1.0326 compared to $1.0105 a year ago. 

F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:     .8000 -  .9000   MOSTLY:   .8200 - .8800      
HIGH HEAT:          1.0000 - 1.0500                              

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