MD_DA640

     Nonfat Dry Milk - Western U.S.

     Report 8 - Released on February 21, 2019

     This week, the Western low/medium heat nonfat dry milk (NDM) market has been very quiet in
     terms of commercial activity. Compared to the previous week, NDM spot values are mixed as
     some sales pulled up the bottom price of the range and mostly series, following upward SMP
     pricing movements in some auctions abroad and an increase in the domestic NDM futures values
     for Q1 and Q2. Albeit the market has been described as silent, ambiguity prevails among
     several buyers/end users as their market expectations differ from most NDM processors. On
     the one hand, some buyers are adopting a wait-and-see approach, since, according to them,
     NDM inventory levels are readily available, above their immediate needs, thus, prices should
     decrease very soon. In addition, the supply of NDM should continue to increase, especially
     during spring flush, while demand is expected to remain relatively stagnant. On the other
     hand, in the short term, some NDM processors anticipate a general improvement in NDM demand
     and prices ahead of the upcoming spring baking season needs. For several NDM manufacturers,
     the market is in economic equilibrium and will be strengthened in Q2. Meanwhile, the
     production of low/medium heat is ongoing encouraged by large regional farm milk intakes. In
     the case of high heat NDM, prices are also mixed on very light trading. High heat NDM
     production is sporadic as most processors are focusing on low/medium heat NDM manufacturing.
     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:                 .9500 - 1.0300
     Mostly Range - Low & Medium Heat; $/LB:                .9700 - 1.0200


     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:                         1.1000 - 1.1650


     Information for the period February 18 - 22, 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: https://www.ams.usda.gov/market-news/dairy
     DMN MARS (MyMarketNews): https://mymarketnews.ams.usda.gov/
     DMN Database Portal: https://www.marketnews.usda.gov/mnp/da-home