Nonfat Dry Milk - West
USDA - Thu Jan 10, 10:33AM CST
MD_DA640

     Nonfat Dry Milk - Western U.S.

     Report 2 - Released on January 10, 2019

     In the western region, free on board spot prices for low/medium heat nonfat dry milk (NDM)
     shifted sharply up on moderate to strong trading. NDM futures values for the first two
     quarters of the year inched up, too. The main question this week, among the dairy industry,
     is whether NDM cash values bounced too quickly during the past few days. There are some main
     reasons according to several market participants. First, the United States dollar continues
     to decrease, particularly, compared to Mexican currency (pesos), therefore, in theory, it is
     cheaper for Mexican buyers to acquire NDM/SMP from western United States. However, knowing
     this, some NDM processors are taking advantage of this opportunity, increasing their prices
     to maximize profits. Second, with the new year starting, NDM stocks are pretty committed
     thru contractual needs for Q1 and Q2, thus, supplies are less available in the spot market.
     Finally, some manufacturers are holding several NDM loads in order to sell it at higher
     prices in the near future, creating an apparent lower supply in the regional market.
     Meanwhile, large skim milk volumes continue clearing into dryers. At this point, NDM
     inventories vary from plant to plant. High heat NDM price are up this week, following
     low/medium heat price trends. Production is sporadic, based on contractual requirements.
     Inventories are reported as tight throughout the region.
     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:                 .9300 - 1.0200
     Mostly Range - Low & Medium Heat; $/LB:                .9400 - 1.0000


     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:                         1.0900 - 1.1500


     Information for the period January 7 - 11, 2019, issued weekly

     Published by:
     Dairy Market News - Madison, WI
     ANGEL TERAN-RAMOS, 6084228593
     Email: angel.teran@ams.usda.gov

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