Nonfat Dry Milk is the Belle of the Dairy Ball

ZISK
55 minutes ago
1 min read

Nonfat dry milk (NDM) remains the belle of the dairy ball as prices rose to fresh record highs this week. On Thursday, the spot price hit an all-time peak of $2.295/lb. though the price dipped a half cent on the final day of trading. By the conclusion of Friday’s spot session, NDM was up 2.75¢ from last week. While elevated NDM price levels have provided an encouraging lift to Class IV milk prices, they have also made U.S. milk powder uncompetitive compared to other international suppliers and have severely limited the opportunity for U.S. manufacturers and traders to mint new export deals.

This challenge began to manifest in March as U.S. milk powder exports dipped 7.8% year over year during the month. U.S. suppliers shipped 59,522 metric tons (MT) (131.2 million pounds) of powder abroad in March, the lowest volume notched for the month since 2017. Exports to Mexico slipped by 6.8% year over year as buyers shied away from expensive product. Shipments to other key destinations in Southeast Asia and the Middle East also tumbled as importers sought more affordable sources for their needs. Given that high prices have persisted, U.S. exports of milk powder are expected to remain under pressure over the coming months.

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