MD_DA640

     Nonfat Dry Milk - Western U.S.

     Report 23 - Released on June 04, 2020

     In the West, f.o.b. prices for low/medium heat nonfat dry milk are higher on the range and
     on the mostly series. There remains a lot of uncertainty as to the future direction of the
     market. Low/medium heat nonfat dry milk sales are strong in the international market as well
     as the domestic market. Recently, the peso has increased in value, facilitating Mexican
     purchases of U.S. SMP/NDM. Low/medium heat nonfat dry milk production has declined somewhat
     due to seasonal declines in milk volumes. Low/medium heat nonfat dry milk supplies are just
     enough to meet contractual needs, but are not always available for spot sales. The high heat
     nonfat dry milk price range has widened as prices at the top of the range have strengthened.
     There is a good balance between contractual sales and stocks. However, no stocks are
     available to fill additional requests that might come in. High heat production continues to
     be limited to what is needed in the short run.

     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:                 .9725 - 1.0825
     Mostly Range - Low & Medium Heat; $/LB:                1.0000 - 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:                         1.0800 - 1.2200


     Information for the period June 1 - 5, 2020, issued weekly

     Secondary Sourced Information:

     At the GDT Event 261 on June 2, 2020 skim milk powder (SMP) prices across all contract
     periods averaged $1.1476 per pound, down 0.5 percent from the last event.

     The CME Group monthly average price for Grade A NDM during May was $.9191, compared to
     $1.0513 a year ago.

     The May 2020 Dairy Market News monthly average for the West low/medium heat nonfat dry milk
     mostly series is $0.8935 compared to $1.0370 a year ago. The average for Western high heat
     nonfat dry milk is $1.0568 compared to $1.1972 a year ago.


     Published by:
     Dairy Market News - Madison, WI
     FLORENCE KONE-GONZALEZ, (608)422-8594
     Email: florence.konegonzalez@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