Butter  Highlights

                                         Agricultual Marketing   Service                                                                                                                 Report  51
                                         Dairy Market  News
                                                                                                                                                                                February  21, 2023
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      Ahead of upcoming spring flush, farm milk production is beginning to ramp up in most of the
         main dairy states in the west region. Therefore, several balancing plants across the region
         have been very busy converting large volumes of condensed skim milk into low/medium nonfat
         dry milk (NDM) and skim milk powder (SMP). Currently, NDM   inventories are steadily growing,
         while prices in the spot market are starting to drop. In fact, this week, free on board
         (f.o.b.) spot prices for low/medium nonfat dry milk are mostly down, as NDM  supplies are
         slightly above the immediate need from buyers. In the futures/options markets, NDM  values
         also dipped a little bit for the rest of Q1. The industry stakeholders describe the NDM
         market as unsettled at this point, as according to them, the market is transitioning from
         being firm to becoming in relative equilibrium. However, NDM  prices remain high for several
         buyers/end users as they await the typical pricing downtick that usually happens in the
         spring each year, in order to buy or set a contract. Demands from bakers are fair/good as
         the spring baking season approaches. High heat NDM  prices are steady to slightly down  on a
         narrower range. Production is unsteady as it is mostly based on contractual needs.
         Inventories in the spot market remain tight as several manufacturers are prioritizing drying
         schedules to make low/medium heat NDM  and SMP.
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      The Agricultural Marketing Service (AMS) reported August 2022 estimated fluid product
         sales. The U.S. sale of total organic milk products was 241 million pounds, up 2.1 percent
         from August 2021, but down  1.5 percent year-to-date. Organic whole milk sales, 116 million
         pounds, were up 6.6 percent compared to a year earlier and up 2.2 percent year-to-date.
         Reduced fat milk (2%) sales were 79 million pounds, down  1.1 percent from the previous year
         and down  3.3 percent year-to-date. Organic flavored whole milk sales,1 million pounds,
         increased 37.5 percent from the previous year, and increased11.6 percent year-to-date.
      Information for the period December 16, 2019 - February 24, 2023, issued weekly



















      Published by:
      Dairy Market News - Madison, WI
      DEREK SCHWANDT,  null
      Email: EEMSCERT@ftc.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