Nonfat Dry Milk - West
MD_DA640

     Nonfat Dry Milk - Western U.S.

     Report 4 - Released on January 24, 2019

     Free on board spot prices for western low/medium heat nonfat dry milk (NDM)are mixed this
     week on a narrower range. While for most processors market conditions continue balanced, for
     many customers the market tone remains unsettled, without a logical economic basis to
     sustain current values as large stocks are still available throughout the region to cover
     any spot need. However, most of these stocks are highly committed thru Q1 and Q2 contracts,
     according to some NDM manufacturers. Demands from the bakery sector are active as the spring
     baking season approaches. Exports to Mexico are strong, while competition from the European
     Union is imminent. In fact, renegotiations of the Free Trade Agreement between the European
     Union and Mexico (TLCUEM) are being carried out as recently, Mexico opened its doors for the
     first year of effectiveness of this agreement, with quotas of up to 100 thousand liters in
     the importation of several dairy products, including SMP and WMP. Back to the U.S., the
     production of low/medium heat NDM in the western region of the United States is very active,
     supported by heavy farm milk intakes. However, in the case of high heat NDM, the production
     is sporadic, mostly dictated by contractual needs. This week, prices for high heat NDM are
     steady to slightly lower.
     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:                 .9500 - 1.0550
     Mostly Range - Low & Medium Heat; $/LB:                .9800 - 1.0200


     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:                         1.0900 - 1.1850


     Information for the period January 21 - 25, 2019, issued weekly

     Published by:
     Dairy Market News - Madison, WI
     AJ Angel Teran, (608)422-8593
     Email: Angel.Teran@usda.gov

     Additional Dairy Market News Information:
     Dairy Market News (DMN) by Phone: (608)422-8602
     DMN Website: http://www.ams.usda.gov/market-news/dairy
     DMN Database Portal: http://www.marketnews.usda.gov/mnp/da-home