Nonfat Dry Milk - West
USDA - Thu Dec 07, 10:54AM CST
MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  December 7, 2017 (REPORT 49)                      

NONFAT DRY MILK - WEST                                           

In the West, f.o.b. prices for low/medium heat nonfat dry milk (NDM) 
are steady on the range, but lower on both ends of the mostly price 
series. The market tone remained weak throughout the week. Low/medium 
heat NDM inventories are balanced to plentiful depending on the 
suppliers. Production is steady, although some processors report 
being cautious about the volumes they are producing. Spot trade 
activities are light, but contracted loads are moving as planned. A 
number of market participants were expecting demand of low/medium 
heat NDM to rebound, but so far, it has not happened. Some buyers/end 
users are waiting on making their purchases as they expect more 
declines in the prices for Q1 2018 variable contracts. Prices for 
high heat nonfat dry milk are lower at both ends of the range 
following changes of various pricing bases. Inventories are limited 
to adequate. However, they are sufficient to meet contractual and 
spot trade needs. Production is intermittent. The CME Group monthly 
average price for Grade A NDM during November was $0.7234, compared 
to $0.8914 a year ago. The November 2017 Dairy Market News monthly 
average for the West low/medium heat nonfat dry milk mostly series is 
$0.7563 compared to $0.9333 a year ago. The average for Western high 
heat nonfat dry milk is $.9400 compared to $1.0303 a year ago. The 
NASS Dairy Products report noted U.S. human NDM production during 
October 2017 in the West region totaled 100.4 million pounds, 20.9 
percent higher than one year ago, and 18.1 percent higher from the 
previous month. Total U.S. human NDM production during October 2017 
was 149.2 million pounds, up 6.5 percent from last year. Cumulative 
human NDM production from January to October was 1.524 billion 
pounds, 3.7 percent above the previous year. Total U.S. NDM, human, 
month ending stocks for October were 328.0 million pounds, 46.5 
percent above a year ago. At the GDT Event 201 on December 5, 2017 
skim milk powder (SMP) prices across all contract periods averaged 
$.8047 per pound, up 4.7 percent from the last event.

F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:    .6500 - .8050   MOSTLY:   .7100 - .7600      
HIGH HEAT:          .8500 - .9600                                

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

October Total         112.7          - 33

TOTAL, JAN - OCT     1,082.0            ...
 1 Mexico              505.8            ...
 2 Philippines         131.6           - 13
 3 China                66.8           + 99
 4 Indonesia            95.3           - 42
 5 Malaysia             51.1           + 10

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