Nonfat Dry Milk - West
USDA - Thu Mar 08, 10:43AM CST
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  March 08, 2018 (REPORT 10)                         

NONFAT DRY MILK - WEST                                           

Western low/medium heat nonfat dry milk (NDM) free on board (f.o.b.) spot 
prices are slightly lower on both the range and mostly series. Similarly, 
the NDM futures values for the rest of Q1 and Q2 shifted down. Most industry 
participants agree that the market is weaker compared to a few weeks ago. 
With the expectation of having heavy drying schedules during the upcoming 
spring flush, many NDM manufacturers have had to reduce prices to clear aged 
NDM supplies. In this way, they are planning to have enough storage space to 
accommodate large amounts of NDM stocks throughout the season. Having said 
this, some processors expect to obtain improved NDM prices from recent and 
near future production. Meanwhile, with various NDM contract base indices 
trending down, some buyers/end users are postponing Q2 negotiations, 
anticipating lower values before the conclusion of Q1. Spot trading is 
light/moderate as most sales are based on contracts this week. Overall, 
buyers/end users' demands are sluggish, below the current NDM/SMP 
oversupply. Nevertheless, the current NDM pricing trends are attracting the 
attention of some WPC34% buyers/end users. High heat NDM production is 
irregular, driven by contractual needs. Inventories are sufficient for 
fulfilling customer orders. Prices for high heat nonfat dry milk shifted 
slightly down this week. 

The February 2018 Dairy Market News monthly average for the West low/medium 
heat nonfat dry milk mostly series is $0.7221 compared to $0.9758 a year 
ago. The average for Western high heat nonfat dry milk is $0.9118 compared 
to $1.1116 a year ago. 

The CME Group monthly average price for Grade A NDM during February was 
$0.7097, compared to $0.9000 a year ago. 

The NASS Dairy Products report noted U.S. human NDM production during 
January 2018 in the West region totaled 102.4 million pounds, 6.5 percent 
higher than one year ago, and 0.5 percent higher from the previous month. 
Total U.S. human NDM production during January 2018 was 161.7 million 
pounds, up 5.4 percent from last year. Total U.S. NDM, human, month ending 
stocks for January were 340.2 million pounds, 50.0 percent above a year ago.

F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:    .6150 - .7500   MOSTLY:   .6500 - .7200      
HIGH HEAT:          .8500 - .9400   

U.S. NDM Exports, H.S. Code 0402100000(FAS)
                 2018 Exports      % Change From 
                 (Million Lb.)       1 Year Ago

January Total          109.4           + 4

TOTAL, JAN             109.4           + 4
 1 Mexico               45.1           + 8
 2 Indonesia            12.8           + 8
 3 Philippines          10.8           - 35
 4 Vietnam               7.1           + 6
 5 Pakistan              6.1           + 36

1100CT 608.422.8593
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