MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  October 15, 2015 (REPORT 41)                                      

NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Central low/medium heat nonfat dry milk prices are 
steady to higher following adjustments in various indices. 
Demand is reported as light outside of contracts. Producers 
indicate the rate of sales slowed during the week. They are 
still fulfilling contracts, but requests for spot loads are 
limited. Brokers/traders also report their second tier offers 
are garnering few responses from end users. Sellers theorize 
buyers are waiting out the recent uptick in prices while hoping 
for some lower prices in the next few weeks. Industry 
participants also report, though, that many of the larger end 
users have already finalized contracts for 2015 and early 2016. 
These contracts are being filled on a weekly basis and keeping 
NDM inventories in the Central region at comfortable levels. In 
addition, manufacturing milk supplies are still filling active 
Class III interest ahead of butter/powder. Low/medium heat NDM 
production is steady at most Central facilities. Conversely, a 
few plant managers indicated they shifted a portion of weekly 
milk volumes originally destined for Class III use toward 
butter/powder this week. The shift added a needed boost to 
butter production, and also aided low/medium NDM output. High 
heat NDM prices in the Central region moved higher on the bottom 
of the range. Manufacturers are scheduling high heat NDM 
production intermittently to stay ahead of contract fulfillment 
needs. Inventories are light. 

EAST: Low/medium nonfat dry milk prices are higher to steady. 
Milk volumes for NDM processing are seasonally increasing.
Thus, production is higher. Inventories are steady to higher. 
Sales in the spot market are slightly lower as buyers take a 
wait and see attitude. The market undertone is mostly steady. 
High heat nonfat dry milk spot prices are higher to steady. 
Demand from bakers is improving as the Q4 holiday season 
approaches. Some processors indicate higher spot sales 
throughout the week. The market tone is firmer. Production is 
steady. Inventories are unchanged. 



F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .9650 - 1.1200         MOSTLY:   .9700 - 1.0300              
HIGH HEAT:        1.0850 - 1.1800                                               

1100CT Angel.Teran@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-home