MD_DA640

     Nonfat Dry Milk - Western U.S.

     Report 19 - Released on May 09, 2019

     F.O.B. prices for low/medium heat nonfat dry milk are trending higher at the bottom of the
     range and at the top of the mostly price series. Market conditions seem to be firming up as
     reflected by the prices. Inventories of low/medium heat nonfat dry milk are balanced to
     tight. According to some contacts, most future outputs for Q2/Q3 have already been
     contracted. Current production, although active, is below last year's volumes. Domestic
     demand is flat while international sales are strong, especially the orders coming from
     Mexico. On the other hand, high heat nonfat dry milk prices are unchanged this week. The
     supplies are becoming more restricted due to inadequate time availability for drying. High
     heat nonfat dry milk outputs are primarily made to contractual orders.

     The April 2019 Dairy Market News monthly average for the West low/medium heat nonfat dry
     milk mostly series is $0.9873 compared to $0.7370 a year ago. The average for Western high
     heat nonfat dry milk is $1.1297 compared to $0.9233 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:                 .9775 - 1.0750
     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:                         1.1200 - 1.2450

     Information for the period May 6 - 10, 2019, issued weekly

     Secondary Sourced Information:

     At the GDT Event 235 on May 7, 2019 skim milk powder (SMP) prices across all contract
     periods averaged $1.1435 per pound, up 2.8% from the last event.

     Grade A nonfat dry milk price at the CME Group on Wednesday closed at $1.0725, up $1.0370
     from a week ago.

     The CME Group monthly average price for Grade A NDM during April was $0.9986, compared to
     $0.7656 a year ago.

     Dairy Products Report ± Nonfat Dry Milk, Human Summary
     Released May 2, 2019, by the National Agricultural Statistics Service (NASS), Agricultural
     Statistics Board, United States Department of Agriculture (USDA).

     Nonfat Dry Milk, Human  Production ± States and United States: March 2018 and 2019
                           Monthly Production (1000 pound     Percent Change from
                               March  February     March        March  February
     Region                     2018      2019      2019         2018      2019
     United States           177,980   153,806   163,707         -8.0       6.4

     Atlantic                 36,202    27,506    33,210         -8.3      20.7
        Pennsylvania          18,120    14,119    15,560        -14.1      10.2

     Central                  26,181    30,509    27,879          6.5      -8.6

     West                    115,597    95,791   102,618        -11.2       7.1
        California            69,665    61,538    68,561         -1.6      11.4
     Other States 1/          90,195    78,149    79,586        -11.8       1.8
     1/ States not shown when fewer than 3 plants reported or individual plant operations could
     be disclosed.

     Nonfat Dry Milk, Human Production ± Cumulative Production February - March
                           Cumulative Production  Percent Change
                                (1000 pounds)         from
     Report Month               2018      2019        2018
     March                   494,357   490,203        -0.8

                                       Manufacturers' stocks end-of-month 3/
                           End of month stocks (1000 pounds)   Percent Change from
                               March  February     March        March  February
     Product                    2018      2019      2019         2018      2019
     Nonfat Dry Milk, Human  297,296   310,447   288,802         -2.9      -7.0
     3/ Stocks held by manufacturers at all points and in transit.
                                         Manufacturers' shipments 4/
                           End of month stocks (1000 pounds)  Percent Change from
                               March  February     March        March  February
     Product                    2018      2019      2019         2018      2019
     Nonfat dry milk, human  165,149   126,000   173,539          5.1      37.7
     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/