MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  October 19, 2017 (REPORT 42)                       

NONFAT DRY MILK - WEST                                           

In the west, f.o.b. spot prices for low/medium heat nonfat dry milk 
(NDM) shifted lower on the range, but are mixed on the mostly series. 
As reported by several industry participants, the current NDM values 
are boosting the interest of many buyers/end users. Some NDM 
customers want to settle Q1 2018 contracts in anticipation of prices 
going higher. Some processors maintain that NDM premiums will 
increase very soon as the year-end holidays approach. A few NDM 
producers are clearing remaining stocks from Q1/Q2 at prices close to 
the bottom of the range. Compared to the past week, the market 
undertone is weaker as NDM supply is above demand. Low/medium heat 
NDM production is active in most processing plants as heavy milk 
volumes continue clearing into dryers. Inventories are large and are 
readily available in the spot market. 

Prices for high heat nonfat dry milk are steady to lower as a few 
spot transactions pushed down the top of the pricing range. 
Processing is irregular, mostly based on contractual requirements. 
Inventories are steady.


F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:     .6900 -  .8700   MOSTLY:   .7700 - .8500      
HIGH HEAT:          1.0000 - 1.0200         



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