MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  September 17, 2015 (REPORT 37)                                    


NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Low/medium nonfat heat prices in the region are trending upwards 
in a firming market. Drying schedules are active seasonally with regional 
milk production. Producer offerings of NDM vary, depending on production 
levels and the amount of low/medium NDM contracted. Resale markets are 
somewhat active as sellers prevent undesired inventories levels. Overall, 
demand is light to moderate. NDM volumes continue to clear to cheese 
operations for fortification purposes. Some market participants are using 
substitute dairy ingredients based on the competitive value. Prices for 
high heat nonfat dry milk are higher at the bottom of the range, due to 
movements in the f.o.b. spot market. Production outputs tend to target 
improving seasonal needs.
EAST: Prices for low/medium heat nonfat dry milk are higher in the mostly 
price series due to stronger fob spot prices. Milk supplies are tighter 
in the region and this led to some declines in plant drying schedules. 
Nonfat dry milk production is mixed along seasonal levels with overall 
output at moderate levels this week. Regional buyers anticipate recent 
firming prices to be short-lived. As a result, caution is being exercised 
to avoid carrying higher priced stocks. Domestic demand is improving. 
Trading on the spot market is light, with most product clearing to 
committed customers. The market undertone is firm. High heat nonfat dry 
milk prices are steady to higher. Most processors are making high heat 
nonfat dry milk to order. Inventories are adequate for near-term 
commitments. Demand is light with buyers taking only what is necessary.

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .8200 - .9500          MOSTLY:   .8400 - .9200               
HIGH HEAT:         .9250 - 1.0500                                               

1100CT Daniel.Johnson@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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