MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  August 27, 2015 (REPORT 34)                                       

NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                

CENTRAL: Central nonfat dry milk prices are steady to higher. The market 
tone is unsettled. The increase in the CME Group pricing has some 
wondering if the market is firming. Some manufacturers are making and 
storing NDM in order to wait for higher pricing levels, while others are 
selling at discounts in order to not keep high inventory levels. Demand 
is low domestically, as some end users report having adequate supplies 
through the end of the year, while others are purchasing product to build 
inventories. Some sellers are reporting export interest is picking up. 
Some cheese manufacturers are discontinuing use of NDM in order to sell 
available cream. High heat nonfat dry milk prices are slightly lower. 
Production is limited. Some manufacturers report only producing for 
orders.
EAST: Prices for Eastern nonfat dry milk show signs of firming with the 
upward movement of spot transactions. Some producers maintain confidence 
after holding prices steady at the high end of the range. The production 
of low/medium NDM is lower in the East due to declining milk intakes into 
Class IV operations. Spot market sales are intermittent with purchases 
occurring generally on as-need-bases. High heat nonfat dry milk prices 
are softer. A few processors ramped up high heat production. Buyer needs 
are light with trades occurring primarily through contracts. Baking 
interest is improving. Sales in the spot market are marginal, while light 
stocks limit volumes traded. The market undertone is unsettled.

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .7500 - .8500          MOSTLY:   .7500 - .8000               
HIGH HEAT:         .8550 - 1.0300                                               

1100CT Daniel.Johnson@ams.usda.gov & Tara.Herbst@ams.usda.gov 
USDA/AMS/Dairy Market News, Madison, Wisconsin (608)557.7006
Dairy Market News website: http://www.ams.usda.gov/market-news/dairy
Dairy Market News database portal: http://www.marketnews.usda.gov/mnp/da-
home