MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  October 29, 2015 (REPORT 43)                                      


NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Low/medium heat nonfat dry milk prices in the Central region 
shifted lower on the range and mostly series. While some 
manufacturers claim tight inventories for November/December, attempts 
to push prices higher are meeting with limited buyer interest. Recent 
mixed price movements on various indices are also keeping buyers on 
the sidelines. Production of low/medium heat NDM is steady for the week. 
Some milk marketers indicate they have already received notice from 
cheese manufacturers that starting next week, their demand for milk will 
be lower for the balance of the year. This may translate into milk 
sellers pushing higher milk volumes toward butter/powder plants in the 
last 2 months of the year. Central high heat nonfat dry milk prices are 
lower on an unsettled market. Recent changes on various NDM indices are 
resulting in some price adjustments on the high heat market. Production 
is light to moderate, with manufacturers intermittently placing high heat 
NDM runs into their dryer schedules. Inventories are sufficient to meet 
near term contract fulfillment needs. 
EAST: Low/medium nonfat dry milk prices fell across the range and mostly 
series, reflecting a soft market. Price adjustments occurred as a result 
of declines in fob spot prices. Production is steady, as it relates to 
the region's current milk supply level. Inventories are steady to 
building. Demand is steady to quiet. Buyers are primarily covering short-
term needs as they expect prices to decline further. Active trading 
emerged in the resale side of the market this week. Market participants 
are initiating 2016 contract negotiations. In general, the low/medium NDM 
market undertone is weak. High heat nonfat dry milk prices are trending 
lower. Seasonal demand is active, as stocks remain tight. Some high heat 
NDM manufacturers have scheduled weekly production runs to support year-
end holiday demand. Customer commitments are being filled on a timely 
basis. The market undertone is weakening.

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .9000 - 1.0600         MOSTLY:   .9500 - .9800               
HIGH HEAT:        1.0500 - 1.1800    
                                                                                                                           


Dairy Market News Reporting Changes Proposal

Dairy Market News (DMN) is proposing updating the Dairy Market News 
Working Guidelines. This proposal is the result of an industry comment 
period. The updates would allow DMN market reports to additionally 
include information and sales prices reported by individuals and firms 
functioning as marketing agents selling on the behalf of dairy product 
manufacturers. The Working Guidelines updates are intended to capture 
more information on pricing and market conditions and reflect the 
evolution of the marketing of dairy products. Currently, market pricing 
information is collected for first sale, f.o.b. producers' plants or
warehouses. The changes would be effective starting with Report 1, 
January 2016.

Comment by October 30, 2015 to: DMN@ams.usda.gov
Link to current DMN working guidelines: http://www.ams.usda.gov/market-
news/individual-dairy-market-news-commodity-reports



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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