MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  May 16, 2013 (REPORT 20)                           

NONFAT DRY MILK - WEST                                           

Western low/medium heat nonfat dry milk prices are lower on the 
top ends of the range and mostly price series.  The market tone 
is steady to unsettled.  Other NDM indices are diverging.  The 
California index moved $.0148 lower; whereas the national index 
moved $.0347 higher.  The breadth of the dates of sales included 
and timing of shipments are likely major reasons.  Lower prices 
were also noted for U.S. sourced SMP ($1.72 - 1.80) on the gDT 
auction event this week.  Market interest for NDM is mixed among 
domestic buyers.  Demand is fair to good from mozzarella makers; 
slower from other cheese makers.  Many buyers have coverage or 
are comfortable with current positions.  Export interest for SMP 
remains good with production and shipments active.  The 
price/cost environment makes SMP an attractive option for 
processors.  An expected upcoming tender will likely target U.S. 
powders due to pricing levels and availability.  Drying 
schedules are variable across the region, yet remain seasonally 
active.  Holdings range from light to moderate.  

High heat prices are lower on the top end of the range, 
reflecting softening of the higher prices.  Buying interest is 
mostly steady and to regular accounts.  Production is mainly 
light and being made to order.

F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:    1.6000 - 1.7400   MOSTLY:   1.6500 - 1.7200  
HIGH HEAT:          1.6600 - 1.8050                              

1100CT Butch.Speth@ams.usda.gov 608.278.4152
Donaldo.Nelson@ams.usda.gov     608.278.4156