MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  September 24, 2015 (REPORT 38)                                    


NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: The Central low/medium heat nonfat dry milk market is firming 
and prices are higher. Manufacturers report their light volume offers are 
garnering immediate acceptance from purchasers. Some October fixed price 
deals are finalized. Buyer interest is improving for both near and mid-
term NDM purchasing. Buyers report there are also second tier offers for 
consideration. Some of those offers carry lower prices compared to f.o.b. 
spot offers, reflecting older dates of manufacture. Low/medium heat NDM 
production is steady at most locations. Balancing plant operators report 
that milk orders from Class II and III operations are keeping NDM dryers 
operating below capacity. High heat NDM prices are higher on a firm 
market. Production runs are reportedly occurring more frequently as 
manufacturers focus on filling nearby contracts as well as rebuilding an 
inventory cushion for Q4.   
EAST: The nonfat dry milk market continues to firm as spot prices and 
indices move higher. Low/medium heat nonfat dry milk production is steady 
to lower. Class I demand and increased yogurt production are reducing 
milk intakes for some manufacturers, thereby limiting levels of NDM 
output. In addition, condensed skim contracts being fulfilled by a few 
producers, result in limited supplies remaining for the drying process. 
Buyers continue to hesitate in taking a position on NDM as they assess 
price and production information. A few market participants are 
suggesting that certain market fundamentals are not in place to support 
current prices. The concern seems to evolve around the existence of 
available supplies and mixed demand. Existing accounts are being 
satisfied according to termed agreements. Producers are comfortable with 
current supply levels. Regional inventories are moderate. Eastern high 
heat nonfat dry milk prices are maintaining an upward trend. There is 
very little high heat nonfat being made available for the spot market. 
Most movement occurs on a contractual basis. Demand is fair as seasonal 
interest continues to develop.

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .8500 - 1.0500         MOSTLY:   .8800 - .9800               
HIGH HEAT:         .9800 - 1.1000                                                                                                                               

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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