Nonfat Dry Milk - West
USDA - Thu Nov 09, 10:57AM CST
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  November 9, 2017 (REPORT 45)                      


F.O.B. prices for western low/medium heat nonfat dry milk are lower 
at the bottom of the range and at the bottom of the mostly price 
series. According to contacts, the market undertone is unsettled as 
uncertainty about the intervention program in Europe continues. 
Inventories are readily available. In preparation for the holidays, 
bakers are taking in more loads of low/medium heat NDM. However, 
demand remains below current production levels, putting more pressure 
on sellers. Although interest from Mexico is still lively, the 
attractive offers it is receiving from Europe is challenging U.S 
manufacturers. High heat nonfat dry milk f.o.b. prices are steady 
this week. Manufacturing of high heat nonfat dry milk is ongoing as 
more condensed skim clears to the dryers. Inventories are comfortable 
while sales into the spot market are steady. Overall, the market 
seems balanced. The CME Group monthly average price for Grade A NDM 
during October was $0.7761, compared to $0.8852 a year ago. The 
October 2017 Dairy Market News monthly average for the West 
low/medium heat nonfat dry milk mostly series is $0.8138 compared to 
$0.9334 a year ago. The average for Western high heat nonfat dry milk 
is $1.0031 compared to $1.0510 a year ago. The NASS Dairy Products 
report noted U.S. human NDM production during September 2017 in the 
West region totaled 85.0 million pounds, 4.0 percent higher than one 
year ago, and 1.4 percent higher from the previous month. Total U.S. 
human NDM production during September 2017 was 133.4 million pounds, 
up 6.2 percent from last year. Cumulative human NDM production from 
January to September was 1.4 billion pounds, 3.4 percent above the 
previous year. Total U.S. NDM, human, month ending stocks for 
September were 321.07 million pounds, 48.6 percent above a year ago. 
At the GDT Event 199 on November 7, 2017 skim milk powder (SMP) 
prices across all contract periods averaged $.8246 per pound, up 1.2% 
from the last event.

F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:    .6650 - .8500   MOSTLY:   .7150 - .8200      
HIGH HEAT:          .9000 - .9900        

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

September Total         88.7           - 29

TOTAL, JAN - SEP       969.3           +  6
 1 Mexico              453.8           + 10
 2 Philippines         117.9           -  7
 3 China                59.6           + 92
 4 Indonesia            50.9           - 43
 5 Malaysia             46.6           + 13

1100CT 608.422.8594
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