MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  November 19, 2009 (REPORT 46)                      

NONFAT DRY MILK - WEST                                           

Prices for low/medium heat NDM in the West trended higher this 
week with some prices reflecting indices.  The market tone is more 
on the steady side.  There are sellers finding it harder to move 
loads at higher price; whereas others are still shorting contract 
customers.  Some buyers are assessing needs for the near term and 
are less aggressive in attempting to secure loads.  Producer 
offerings are on the light side into the spot market and more 
often finding light demand.  Contracts are often being delayed.  
The resale market has slowed also.  NDM is moving to fill past 
export contracts.  Drying schedules are steady to slightly higher 
from recent weeks.  Most areas in the region are behind year ago 
levels on milk production.  NDM stocks are light and often 
committed.  High heat prices are higher, reflecting increases in 
index pricing, while the market tone is mostly steady.  Output is 
light and mainly being done to meet contract orders.  Stocks are 
light.  According to FAS, exports of NDM/SMP for the first nine 
months of the year total 408.4 million pounds, down 44% from the 
same period in 2008.  For this period of January-September 2009, 
exports accounted for 30% of the total production for the two 
commodities.  The top five export destinations, the pounds 
shipped, and the change from last year are as follows:  Mexico 
173.3 million pounds, -20%; Philippines 41.3 million pounds, -54%; 
Indonesia 33.5 million pounds, -59%; Vietnam 29.4 million pounds, 
+45%; and Algeria 27.6 million pounds, -28%.  These five countries 
accounted for exports totaling 305.0 million pounds or 75% of the 
total for the nine month period.  During September, exports 
totaled 43.6 million pounds, 32% lower than a year ago.  
                     
F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:    1.1000 - 1.4100   MOSTLY:   1.1700 - 1.4000  
HIGH HEAT:          1.1600 - 1.4200                              

1100CT butch.speth@ams.usda.gov