MD_DA640

     Nonfat Dry Milk - Western U.S.

     Report 1 - Released on January 06, 2022

     The price range for low/medium heat nonfat dry milk (NDM) moved higher this week. The mostly
     price series also saw upward movement on both ends, in the West. Demand for low/medium heat
     is unchanged in domestic markets, and steady demand is present from international
     purchasers. Market prices for low/medium heat NDM have moved 2 cents higher, on the CME,
     since last Wednesday. Contacts say that port congestion, extreme weather, and a shortage of
     truck drivers are contributing to higher shipping costs and longer delivery times.
     Low/medium heat NDM inventories are available for spot purchasing. Some low/medium heat NDM
     producers are, reportedly, running below capacity. Bad weather and staffing shortages are
     causing some plant managers to run reduced production schedules. The price range for high
     heat NDM has moved higher, on both ends, in the West. Spot purchasers say that high heat
     inventories are tight. Demand for high heat NDM is steady, though production is currently
     limited. Plant managers are focusing their schedules on the production of low/medium heat
     NDM and SMP.


     The December 2021 Dairy Market News monthly average for the West low/medium heat nonfat dry
     milk mostly series is $1.5925 compared to $1.1182 a year ago. The average for Western high
     heat nonfat dry milk is $1.7254 compared to $1.2500 a year ago.
     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:                 1.5700 - 1.7125
     Mostly Range - Low & Medium Heat; $/LB:                1.6200 - 1.6600


     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:                         1.7475 - 1.8350


     Information for the period January 3 - 7, 2022, issued weekly

     Secondary Sourced Information:

     The CME Group monthly average price for Grade A nonfat dry milk during December was
     $1.6290, compared to $1.5570 a month ago, and $1.1445 a year ago. The CME Grade A nonfat dry
     milk price averaged $1.3196 for the year of 2021.
     Published by:
     Dairy Market News - Madison, WI
     ROMAN CARAMAN, 608-422-8593
     Email: roman.caraman@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