MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  September 03, 2015 (REPORT 35)                                    


NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Central low/medium heat nonfat dry milk prices are mostly higher 
on a firmer market. CME Group NDM prices stepped higher early in the 
week, following a price trend set by some international markets. However, 
some buyers are reluctant to acknowledge the market bottom is in the rear 
view mirror. This is especially so because buyers are aware of active 
production schedules at many plants in the Central region. Manufacturers 
indicate, though, some buyers/end users stepped forward to purchase 
sufficient NDM low/medium heat loads to cover monthly needs. This is a 
change in buying patterns compared to just a few weeks ago when buyers 
followed hand to mouth patterns. Also, there are ongoing buyer/producer 
discussions centered on meeting NDM needs through the end of October or 
the end of the year. Producers feel this shows these buyers judge the 
downside risk is low enough to warrant purchasing at current prices. 
Low/medium heat nonfat dry milk production is steady. As farm milk 
intakes move downward, manufacturers are compensating by decreasing 
f.o.b. spot sales of condensed skim. Prices for Central high heat nonfat 
dry milk are higher. Interest from baking related accounts are inching 
higher. Manufacturers' inventories are light. Production is still being 
scheduled intermittently, but more frequently than in past weeks.  
EAST: Nonfat dry milk prices in the East are higher in the mostly series, 
as pricing indices move upward. Processers are seeing marginal declines 
in production due to diminishing condensed skim supplies. However, 
heavier drying is expected to take place this holiday weekend as 
availability improves. Sources suggest that most of producers' 
inventories of low/medium nonfat are plentiful in the East. Interest is 
growing with noticeable increases in buyer inquires. With the volume of 
NDM available, prospective buyers do not feel pressured to rush   
transactions. Domestic interest is light to moderate. High heat prices 
have increased. Some inventories are improving beyond contractual needs 
as those plants focus on high heat production. Offerings are currently 
limited for spot needs. Buyer interest is light to moderate and growing 
seasonally. The NDM market undertone is firming. The CME Group, August 
2015 monthly average for NDM is $0.7329 compared to $1.4365 the previous 
year.

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .7500 - .8800          MOSTLY:   .7800 - .8200               
HIGH HEAT:         .8750 - 1.0500                                                                                                                               


1100CT Daniel.Johnson@ams.usda.gov & Janet.Linder@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-
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