MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  August 20, 2015 (REPORT 33)                                       


NONFAT DRY MILK - CENTRAL AND EAST                                              

CENTRAL: Prices for Central nonfat dry milk are unchanged to higher. The 
market tone is mixed. Upticks occurred in recent international auction 
results and on the CME Group trading platform. In the domestic market, 
sellers are trying to capture some of those price enhancements. However, 
buyer interest has yet to fully accept that this market has found a level 
of support. Many purchases are limited to filling near-term needs, but 
some block sales are clearing. Low/medium heat nonfat dry milk production 
in the Central region is ongoing. Cheese production, though, continues to 
take gulps out of the milk volumes available to clear through dryers. The 
Class III use and some decreases in overall regional milk production have 
eased NDM inventory build-up at several locations. High heat nonfat dry 
milk prices are unchanged. Manufacturers report interest is increasing 
ahead of the fall baking season. High heat NDM production is increasing 
as manufacturers note dryer schedules have more timeslots for high heat 
NDM processing. Inventories are light.
EAST: Low/medium heat nonfat dry milk prices are steady to higher in the 
mostly series. Eastern production has slowed. Plants are seeing reduced 
milk intakes due to declines in seasonal milk outputs, and heavy milk 
volumes moving into Class I school-focused production. Due to existing 
market dynamics, some nonfat dry milk producers are resisting lower bids, 
with expectations that prices will improve seasonally. Buyers' holdings 
are mostly sufficient while they wait for bargains, should they become 
available. Resources suggest that in general, the expectation is nonfat 
prices will move sideways. Additionally, prices close to world market 
levels are encouraging buyer/seller contractual interest. Domestic demand 
is moderate. The market undertone for low/medium nonfat is mixed. Prices 
for high heat nonfat dry milk are steady. Production is balanced. Market 
indications suggest that high heat demand may be picking up some, 
although currently seasonally light. Some manufacturers are finding 
available dryer time for producing high heat nonfat with the goal of 
staying ahead of orders. 

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .7100 - .8500          MOSTLY:   .7100 - .8000               
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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