MD_DA640

     Nonfat Dry Milk - Western U.S.

     Report 28 - Released on July 11, 2019

     Western free on board spot prices for low/medium heat nonfat dry milk (NDM) are slightly
     lower this week. While NDM cash prices slightly dipped, the market tone shows no significant
     signs of weakness, but is somehow unsteady at this moment. For some processors, prices
     should bounce again throughout the summer season driven by lower regional milk intakes. On
     the other hand, some buyers/end users hope to see another dip on prices soon as NDM
     inventories from recent production are readily available. Nevertheless, according to NDM
     manufacturers, most stocks are highly committed for current and near future contracts.
     Futures values for Q3/Q4 contracts shifted down, but remain above $1.04 per pound for the
     rest of the year. Back to the regional spot market, sales have been more active than the
     previous shortened holiday week. Demands from cheese makers and bakers are fair/good.
     Although regional farm milk outputs are seasonally down, NDM production is ongoing as
     condensed skim volumes are enough to meet most drying needs. Meanwhile, NDM/SMP exports to
     Mexico are reported as steady to strong as milk production is seasonally decreasing in the
     main dairy basins of that country.

     Western high heat NDM prices are steady to slightly lower. Production is sporadic, mostly
     driven by contractual requirements. Inventories are mixed 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:                 .9700 - 1.0900
     Mostly Range - Low & Medium Heat; $/LB:                1.0300 - 1.0500


     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:                         1.1500 - 1.2450


     Information for the period July 8 - 12, 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