MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  October 12, 2017 (REPORT 41)                       

NONFAT DRY MILK - WEST 

In the West, nonfat dry milk (NDM) prices are lower at the bottom of 
the range and both ends of the mostly price series. According to some 
contacts, skim milk powder (SMP) is currently selling at lower prices 
compared to nonfat dry milk. Reports suggest stronger NDM/SMP sales 
to Mexico and Southeast Asia. However, those sales are made at prices 
at the bottom of the price range. Domestic demand for NDM is steady, 
and production is seasonally steady to lower. Inventories are 
plentiful. With the approaching year-end holidays, NDM requests from 
the bakery and confectionary industries are starting to move up. In 
addition, cheese manufacturers are pulling some loads for cheese 
fortification. Prices for high heat nonfat dry milk are steady on 
both the range and the mostly price series. However, some industry 
contacts report selling older inventories at lower prices. High heat 
nonfat dry milk supplies continue to be tight. The majority of 
production is geared toward fulfilling contractual obligations. The 
NASS Dairy Products report noted U.S. human NDM production during 
August 2017 in the West region totaled 83.8 million pounds, 18.3 
percent higher than one year ago, but 5.2 percent lower from the 
previous month. Total U.S. human NDM production during August 2017 
was 136.4 million pounds, up 15.9 percent from last year. Cumulative 
human NDM production from January to August was 1.2 billion pounds, 
3.1 percent above the previous year. Total U.S. NDM, human, month 
ending stocks for August were 307.8 million pounds, 31.0 percent 
above a year ago. 

U.S. NDM Exports, H.S. Code 0402100000(FAS)
                 2017 Exports      % Change From 
                 (Million Lb.)       1 Year Ago

August Total           108.1            - 6
TOTAL, JAN - AUGUST    880.6           + 11
 1 Mexico              407.7           + 17
 2 Philippines         113.4           +  1
 3 China                54.2           + 86
 4 Indonesia            47.9           - 39
 5 Malaysia             41.6           + 17

F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:    .7700 - .9000   MOSTLY:   .8000 - .8500      
HIGH HEAT:         1.0000 -1.0500                              

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