MD_DA640

     Nonfat Dry Milk - Western U.S.

     Report 38 - Released on September 19, 2019

     In the West, spot prices for low/medium heat nonfat dry milk (NDM) are mostly higher on a
     firmer market. Similarly, NDM futures values for the next quarter of the current year
     increased with a fair volume of contracts. For some manufacturers, the strong NDM demand to
     cover immediate needs, particularly from Class III for cheese fortification, is helping to
     boost NDM prices. At this point, NDM supplies are less accessible in the spot market, as
     they are highly committed to cover needs from current and future contracts. However, as
     reported by some buyers/end users, NDM supplies should be available in the spot market, as
     several manufacturers continue to store some volumes of NDM, to capitalize on higher prices
     in the near future. Meanwhile, NDM/SMP requests from Mexico remain strong, albeit farm milk
     production in this country is slowly improving. Back to western U.S., large volumes of
     condensed skim milk continue clearing into dryers for NDM/SMP production. High heat NDM
     prices are up on light spot trading. Supplies are scarce in the cash market as production is
     sporadic, mainly driven by contractual needs.
     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:                 1.0250 - 1.1050
     Mostly Range - Low & Medium Heat; $/LB:                1.0400 - 1.0800


     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:                         1.1600 - 1.2425


     Information for the period September 16 - 20, 2019, issued weekly

     Published by:
     Dairy Market News - Madison, WI
     ANGEL TERAN-RAMOS, 6084228593
     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 (My Market News): https://mymarketnews.ams.usda.gov