Nonfat Dry Milk - West
USDA - Thu Feb 07, 10:38AM CST
MD_DA640

     Nonfat Dry Milk - Western U.S.

     Report 6 - Released on February 07, 2019

     In the West region, free on board (f.o.b.) spot prices for low/medium nonfat dry milk (NDM)
     are mostly mixed. However, since the market tone seems stable in terms of supply and demand,
     changes in prices have been minimal, compared to the previous week. According to some
     contacts, recent upward SMP price movements in some offshore auctions could spur domestic
     NDM values, at least in the short term. In fact, at this point, future NDM values rebounded
     for the rest of Q1 and Q2. NDM prices remain high for several buyers/end users as they await
     the typical pricing downtick that usually happens in the spring each year, in order to buy
     or set a contract. Meanwhile, with Class III prices lower than Class IV, several processors
     with drying capabilities are moving milk into NDM production. Thus, NDM manufacturing is
     ongoing, while stocks are steadily growing and expected to continue building throughout the
     spring flush. Currently, requests from bakers are fair/good as the spring baking season
     approaches.

     High heat NDM prices are mixed on a narrower range. Demand is steady. Production is
     irregular, based on contractual needs. Inventories are tight as several manufacturers are
     prioritizing drying schedules to make low/medium heat NDM and SMP.

     The January 2019 Dairy Market News monthly average for the West low/medium heat nonfat dry
     milk mostly series is $0.9807, while the average for Western high heat nonfat dry milk is
     $1.1199.
     Prices for: Western U.S., All First Sales, F.O.B., Extra Grade & Grade A, Conventional, and
     Edible Nonfat Dry Milk
     Price Range - Low & Medium Heat; $/LB:                 .9500 - 1.0400
     Mostly Range - Low & Medium Heat; $/LB:                .9700 - 1.0200


     Prices for: Western U.S., All First Sales, F.O.B., Extra Grade & Grade A, Conventional, and
     Edible Nonfat Dry Milk
     Price Range - High Heat; $/LB:                         1.1000 - 1.1650


     Information for the period February 4 - 8, 2019, issued weekly

     Secondary Sourced Information:

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

     NOVEMBER Total        105.9          - 13

     TOTAL, JAN � NOV     1,461.3           + 22
      1 Mexico              705.1           + 26
      2 Philippines         170.7           + 16
      3 Indonesia           121.5           + 94
      4 Vietnam              76.0           + 92
      5 Malaysia             65.1           + 16

     Published by:
     Dairy Market News - Madison, WI
     AJ Angel Teran, (608)422-8593
     Email: Angel.Teran@usda.gov

      Additional Dairy Market News Information:
          Dairy Market News (DMN) by Phone: (608)422-8602
          DMN Website: https://www.ams.usda.gov/market-news/dairy
          DMN MARS (MyMarketNews): https://mymarketnews.ams.usda.gov/
          DMN Database Portal: https://www.marketnews.usda.gov/mnp/da-home