MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  August 13, 2015 (REPORT 32)                                       


NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Central low/medium heat nonfat dry milk prices shifted mostly 
lower on a weak market. Interest is light outside of contracts. To spur 
some f.o.b. single load/block spot interest, a few producers secured 
sales by shaving prices incrementally. At the same time, producers are 
wary of a race to the bottom on prices and they want to be within the 
market, but not necessarily setting the market. These f.o.b. spot sales 
are helping moderate inventory aging. Buyers indicated fixed price Q4 and 
2016 contract offers are available from some manufacturers, however, the 
offered prices are well above current prices. At this time, buyers are 
reluctant to solidify higher prices on a currently weak market. NDM 
low/medium heat production is steady to lower as milk production declines 
throughout the region. The Central high heat nonfat dry milk price range 
widened on a mixed market. While the overall NDM market is weak, scarcity 
in high heat NDM f.o.b. spot load availability helped a few producers 
secure premiums to the market. In some instances, buyers were shopping 
for a particular high heat NDM brand, adding additional value to the high 
heat loads. High heat NDM production is limited to occasional runs. 
Inventories are tight. 
EAST: Prices for low/medium heat nonfat dry milk continue to trend lower. 
Dryer schedules are seeing a slight reduction at most plants. An increase 
in fluid milk orders, as schools re-open, is pulling on supplies and 
maintenance projects are further limiting NDM production rates. Spot 
market transactions continue to expedite buyers' immediate needs. Some 
manufacturers are not looking to trade in the spot market, and are 
offering NDM closer to the high end of the price range. Although prepared 
to sell nonfat dry milk, those producers note that maintaining sufficient 
inventory levels that satisfy termed contractual agreements is their main 
focus. Supplies are plentiful. High heat prices are mixed. Production 
remains light and sporadic. A few plants are finding time to process high 
heat as milk intake levels drop. Manufacturing contacts note interest for 
high heat is building as potential buyers explore the market. Inventories 
are light. Customer accounts are moving on time.

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .7000 - .8000          MOSTLY:   .7100 - .7800               
HIGH HEAT:         .8750 - 1.0800                                                     

1100CT Daniel.Johnson@ams.usda.gov & Janet.Linder@ams.usda.gov 
USDA/AMS/Dairy Market News, Madison, Wisconsin 608.577.7006
Dairy Market News website: http://www.ams.usda.gov/market-news/dairy
Dairy Market News database portal: http://www.marketnews.usda.gov/mnp/da-
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