MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  October 01, 2015 (REPORT 39)                                      


NONFAT DRY MILK - CENTRAL AND EAST                                              

CENTRAL: Prices for Central low/medium heat nonfat dry milk are mostly 
higher as manufacturers factor in contract and spot sales based on 
variable indices. Market participants report domestic and international 
buyer interests are firming as acceptance increases of the idea that a 
market rebound is taking place. Several end users indicate striking fixed 
price contracts for mid to long-term use is attractive right now, based 
on that understanding of market conditions. As the new month looms, 
though, some producers are now less willing to enter into fixed price 
contracts compared to those based on a variable index. Low/medium heat 
nonfat dry milk production is steady and below maximum throughput at most 
locations. Inventories are comfortable and producers are allocating 
current production among various packaging modes (totes, 50 pound bags, 
and 25 kilogram bags) to best capture upcoming spot opportunities, as 
well as fulfil contract needs. High heat nonfat dry milk prices shifted 
higher on a firm market. Sales are light from manufacturers on a spot 
basis, but contract fulfillment is steady. Production is geared toward 
staying ahead of contract needs. Inventories are light.  
EAST: The East low/medium heat nonfat dry milk prices in the mostly 
series are higher in a firming market. As plants note an increase in milk 
receipts, low heat nonfat dry milk production volumes are seeing marginal 
growth. However, current manufacturing milk supply levels are allowing a 
few nonfat dry milk plant managers to focus on high heat and/or specialty 
production. Low/medium inventory sales have been slower than desired for 
some, as buyers and sellers evaluate when and where prices will initiate 
greater movement. Current stocks are moderate to heavy. Holiday interest 
is improving. Prices for high heat nonfat dry milk showed more strength 
this week. Buyer demand is increasing with seasonal needs. Inventories 
are limited beyond contractual requirements. 

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .8500 - 1.0500         MOSTLY:   .9100 - 1.0000              
HIGH HEAT:        1.0300 - 1.1200                                               

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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