MD_DA640

     Nonfat Dry Milk - Western U.S.

     Report 40 - Released on October 01, 2020

     Throughout the current week, spot prices for Western low/medium heat nonfat dry milk (NDM)
     shifted noticeably higher on a firmer market. In the same fashion, in the future markets,
     NDM values for Q4 and Q1 are on a bullish trend, which has been seem as an optimistic market
     sign for some manufacturers within all the uncertainty caused by COVID-19. There are some
     factors driving NDM prices up. For example, NDM manufacturers are prioritizing the
     completion of Q4 contractual agreements over selling in the spot market. In this way, the
     supply of NDM has been perceived to be below the immediate buyer's needs in the spot market.
     Another factor driving NDM prices up is the hearty demand for protein components within the
     regional and national dairy industry. NDM requests from the bakery and confectionery sectors
     are improving ahead of the year-end holidays. The strong NDM demand from Mexico is also
     contributing to higher prices. Low/medium heat NDM manufacturing is active as enough volumes
     of condensed skim milk continue clearing into dryers, encouraged by improved regional farm
     milk outputs. Spot prices for high heat nonfat dry milk are steady to higher on light to
     moderate cash trading. Interest from bakers is strong as the fall baking season approaches.
     Drying schedules are irregular, mostly driven by Q4 contractual customers' necessities.
     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:                 1.0200 - 1.1675
     Mostly Range - Low & Medium Heat; $/LB:                1.0800 - 1.1400


     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:                         1.1000 - 1.2975


     Information for the period September 28 -  October 2, 2020, issued weekly

     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