MD_DA640

     Nonfat Dry Milk - Western U.S.

     Report 14 - Released on April 02, 2020

     As COVID-19 continues to spread into the country, the fall of low/medium heat nonfat dry
     milk (NDM) spot prices becomes more noticeable, at least during this week in the west
     region. NDM contract values also dropped in the futures markets, with prices rounding to
     $.90 for Q2. Coronavirus remains the wild card, as what will happen in the immediate future
     of this market is unpredictable and conditions could change drastically every day. Various
     manufacturers/buyers are planning business strategies daily in order to mitigate the
     uncertainty factor during this crisis. For example, while some buyers take a wait and see
     approach, others continue buying and stocking for future usage. Meanwhile, some processors
     are slashing prices, trying to stimulate sales. However, some processors prefer to keep
     inventory in stock to sell when things become clear on the market. With most educational
     institutions, restaurants and hotels closed, large amounts of milk have been clearing into
     dryers. NDM production is ongoing, while inventories are steadily building. High heat NDM
     prices are down, in line with low/medium heat NDM. Production is irregular, mostly 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:                 .8400 - 1.0525
     Mostly Range - Low & Medium Heat; $/LB:                .8800 - .9200


     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:                         .9000 - 1.2000


     Information for the period March 30 -  April 3, 2020, 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