MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  November 19, 2015 (REPORT 46)                                     


NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Prices for Central low/medium heat nonfat dry milk are unchanged 
to lower on a weak market. Overall domestic and international supplies 
appear to be weighing heavily on the f.o.b. market and buyer interest. 
Some regional manufacturers, though, report their current light 
inventories mean they are only fulfilling contracts, and they are out of 
the spot market. Numerous buyers are accessing NDM loads via the resale 
market at competitive prices, thus avoiding the f.o.b. spot market. 
Low/medium heat NDM production is ongoing, though at rates below full 
capacity. However, many manufacturers received offers on spot milk loads 
for the upcoming holiday week. During that week, dryer schedules are 
expected to be close to full. High heat nonfat dry milk prices shifted 
lower on the bottom of the range, under pressure from declining 
low/medium heat NDM prices. While most sales are contract based, spot 
loads are garnering light, price-sensitive interest as baking activities 
wind down. Production is intermittent. Stocks are light to moderate.
EAST: Eastern low/medium heat nonfat dry milk prices are steady to lower 
in the range and mostly series, reflecting declines in f.o.b spot prices.   
The market undertone continues to weaken. Regional production rates are 
steady to lower. Condensed skim supplies are light at some plants, giving 
way to dryer maintenance projects and reductions in dryer schedules. 
Inventories are mixed. High heat prices moved lower at the bottom of the 
range on light trading. Sporadic production lends to low but adequate 
inventory levels. Demand is moderate for high heat NDM. Spot load 
availability is limited. At the CME Group, Grade A NDM closed Wednesday 
at $0.7800, down $0.0300 from last Wednesday.

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .8200 - .9700          MOSTLY:   .8400 - .9000               
HIGH HEAT:         .9500 - 1.1800                                                                                                                                                                


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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