Nonfat Dry Milk - West
MD_DA640

     Nonfat Dry Milk - Western U.S.

     Report 49 - Released on December 06, 2018

     The low/medium heat nonfat dry milk prices are higher on the range and the mostly price
     series. The market tone is stable with firm underpinnings. However, some market participants
     say that they do not understand where the strength is coming from. Sales of low/medium heat
     nonfat dry milk in the domestic market are stable as buyers refurnish their stocks for the
     holidays while demand from Mexico remains solid. Negotiations for 2019 Q1 contracts are
     ongoing. Altogether, supplies are balanced with current requests. Low/medium heat nonfat dry
     production is about the same as that of last week. High heat nonfat dry milk market prices
     are still strong and stable. Drying schedules are mostly based on contractual needs. As so,
     spot trading is light. High heat nonfat dry milk demand is lively and is mainly coming from
     the confectionary industry.

     The November 2018 Dairy Market News monthly average for the West low/medium heat nonfat dry
     milk mostly series is $0.8995 compared to $0.7563 a year ago. The average for Western high
     heat nonfat dry milk is $1.0456 compared to $0.9400 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:                 .8550 - .9600
     Mostly Range - Low & Medium Heat; $/LB:                .8850 - .9300


     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:                         1.0300 - 1.0950

     Information for the period December 3 - 7, 2018, issued weekly

     Secondary Sourced Information:

     Grade A nonfat dry milk price at the CME Group on Wednesday closed at $.9100, up $.0035
     from the previous week�s weekly average price of $.9065.

     The CME Group monthly average price for Grade A NDM during November was $0.8856, compared
     to $0.7234 a year ago.

     Dairy Products Report � Nonfat Dry Milk, Human Summary
     Released December 4, 2018, 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:  2017 and  2018
                               Monthly Production (1000 pound       Percent Change from
                               October   September    October        October  September
     Region                       2017        2018       2018           2017       2018
     United States             145,008     108,826    125,290          -13.6       15.1

     West                      100,396      68,848     83,972          -16.4       22.0
        California              53,005      32,706     49,322           -6.9       50.8

     Other States 1/            79,445      66,605     65,262          -17.9       -2.0
     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 - October
                     Cumulative Production     Percent Change
                           (1000 pounds)           from
     Report Month        2017         2018         2017
     October        1,529,698    1,468,708           -4

                                         Manufacturers' stocks end-of-month 3/
                              End of month stocks (1000 pounds)     Percent Change from
                               October   September    October        October  September
     Product                      2017        2018       2018           2017       2018
     Nonfat Dry Milk, Human    316,826     262,320    252,935           -20.2      -3.6
     3/ Stocks held by manufacturers at all points and in transit.
                                           Manufacturers' shipments 4/
                              End of month stocks (1000 pounds)     Percent Change from
                               October   September    October        October  September
     Product                      2017        2018       2018           2017       2018
     Nonfat dry milk, human    161,726     117,221    118,395          -26.8          1
     4/ For dry products, shipments of bulk goods.
     Published by:
     Dairy Market News - Madison, WI
     FLORENCE KONE-GONZALEZ, (608)422-8594
     Email: Florence.KoneGonzalez@ams.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