MD_DA640

     Nonfat Dry Milk - Western U.S.

     Report 36 - Released on September 05, 2019

     According to some manufacturers, the western low/medium heat nonfat dry milk (NDM) market
     seems to be strengthening again after been generally in economical equilibrium during the
     past few weeks. This week, low/medium heat NDM cash prices shifted higher on moderated
     trading. There is a fair sense of optimism in the NDM future markets as contract values and
     volumes for Q4 are generally up. Having said that, a significant portion of the western
     manufacturers¶ NDM stocks is highly committed to meet current and future contract needs for
     the rest of Q3 and Q4. On the other hand, some NDM customers think that the current cash
     prices for NDM are too high, while inventories are readily available in the market. Some
     manufacturers are strategically retaining some supplies, anticipating higher prices in the
     near future. Meanwhile, NDM requests from cheese processors and bakers are active, while
     exports to Mexico are improving. The regional production of low/medium heat NDM is ongoing,
     prompting by higher regional farm milk production. Hight heat nonfat dry milk prices are
     unchanged on very light trading. Production is stable and directed toward fulfilling
     contractual demands. Although spot sale activities are limited, the market undertone seems
     to be in a bullish position. The August 2019 Dairy Market News monthly average for the West
     low/medium heat nonfat dry milk mostly series is $1.0300, while the average for Western high
     heat nonfat dry milk is $1.1870
     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:                 .9850 - 1.0850
     Mostly Range - Low & Medium Heat; $/LB:                1.0300 - 1.0600


     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:                         1.1500 - 1.2250


     Information for the period September 2 - 6, 2019, issued weekly

     Secondary Sourced Information:

     The NASS Dairy Products report noted U.S. human NDM production during July 2019 in the West
     region totaled 105.9 million pounds, 18.3 percent higher than one year ago. Total U.S. human
     NDM production during July 2019 was 168.8 million pounds, up 8.3 percent from last year.
     Total U.S. NDM, human, month ending stocks for July were 291.2 million pounds,8.3 percent
     below a year ago.


     U.S. NDM Exports, H.S. Code 0402100000(FAS)
                      2019 Exports      % Change From
                      (Million Lb.)       1 Year Ago

     JULY Total          109.2             - 9

     TOTAL, JAN-JULY      831.8              - 14
      1 Mexico            417.3              - 2
      2 Philippines        89.8              - 18
      3 Indonesia          68.9              - 13
      4 Vietnam            65.4              + 10
      5 Malaysia           26.2              - 42

     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