MD_DA640

     Nonfat Dry Milk - Western U.S.

     Report 19 - Released on May 07, 2020

     In the West, low/medium heat nonfat dry milk prices are lower at both the bottom of the
     range and the bottom of the mostly series, whereas they remained steady at the top of both
     ranges. The market is unsettled as COVID-19 continues to impact all its aspect. Domestic
     buyers are playing it safe, mostly only filling out immediate needs. As a few states come
     out of the quarantine, many industry participants hope that market conditions will improve
     in the weeks to come. Meanwhile, exports to Mexico are being affected by the strong value of
     the U.S. dollar. Low/medium heat nonfat dry milk inventories are trending up. Storage
     spaces, although available, are tightening up a bit. Low/medium heat nonfat dry milk
     production is active. High heat nonfat dry milk prices are stable. Production is still
     limited to what contractual buyers' needs. Supplies are in good balance with sales.

     The April 2020 Dairy Market News monthly average for the West low/medium heat nonfat dry
     milk mostly series is $0.8789 compared to $0.9873 a year ago. The average for Western high
     heat nonfat dry milk is $1.0468 compared to $1.1297 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:                 .7500 - .9300
     Mostly Range - Low & Medium Heat; $/LB:                .8050 - .8850


     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:                         .9500 - 1.0900

     Information for the period May 4 - 8, 2020, issued weekly

     Secondary Sourced Information:

     Grade A nonfat dry milk price at the CME Group on Wednesday closed at $.8225, up from last
     week's average price of $.8030.

     The CME Group monthly average price for Grade A NDM during April was $.8485, compared to
     $0.9986 a year ago.

     At the GDT Event 259 on May 5, 2020 skim milk powder (SMP) prices across all contract
     periods averaged $1.0764 per pound, up 0.1 percent from the last event.

     Dairy Products Report – Nonfat Dry Milk, Human Summary
     Released May 5, 2020, 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 2019 and 2020
                            Monthly Production (1000 pound    Percent Change from
                               March       Feb     March        March       Feb
     Region                     2019      2020      2020         2019      2020
     United States           161,829   159,128   172,685          6.7       8.5

     Atlantic                 31,201    27,464    28,375         -9.1       3.3
     Pennsylvania             15,560    16,104    15,296         -1.7      -5.0

     Central                  27,719    29,257    30,394          9.7       3.9

     West                    102,909   102,407   113,916         10.7      11.2
        California            68,561    70,087    76,422         11.5       9.0

     Other States 1/          77,708    72,937    80,967          4.2      11.0
     1/ States not shown when fewer than 3 plants reported, or individual plant operations could
     be disclosed.

     Nonfat Dry Milk, Human Production – Cumulative Production: January-March
                         Cumulative Production  Percent Change
                              (1000 pounds)          from
     Report Month               2019      2020       2019
     March                   492,526   508,072        3.2

                                       Manufacturers' stocks end-of-month 3/
                           End of month stocks (1000 pounds)   Percent Change from
                               March       Feb     March        March       Feb
     Product                    2019      2020      2020         2019      2020
     Nonfat dry milk, human  289,892   318,255   349,188         20.5       9.7
     3/ Stocks held by manufacturers at all points and in transit.

                                             Manufacturers' shipments 4/
                           End of month stocks (1000 pounds)  Percent Change from
                               March       Feb     March        March       Feb
     Product                    2019      2020      2020         2019      2020
     Nonfat dry milk, human  173,109   124,613   130,308        -24.7       4.6
     4/ For dry products, shipments of bulk goods.

     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