MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  December 03, 2015 (REPORT 48)                                     


NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Prices for Central low/medium heat nonfat dry milk shifted 
higher on the bottom of the range and mostly series. Interest is tepid. 
Market participants continue to take a wait and see attitude as they 
watch daily/weekly price movement on various indices. Most buyers 
indicate availability of NDM loads in the region is less of a concern 
than focusing on prices for near and midterm acquisitions. Some Central 
manufacturers are offering spot loads to the market, but others report 
their holdings are insufficient to fill both spot and contract needs. 
However, with many smaller plant operators making arrangements now to 
place milk over the holiday weeks, inventories are expected to build 
throughout the month. Low/medium NDM production is steady to lower after 
busy drying schedules over the holiday weekend. Several cheese plant 
operators are taking in extra milk volumes to push production up a notch 
ahead of the holidays. High heat NDM prices in the Central region moved 
higher on the bottom of the range. Most transactions are based on 
contracts, and there is light availability outside of contracts. 
Production is occasional to maintain inventories.
EAST: Eastern low/medium nonfat dry milk prices are steady to higher in 
the range and mostly series. NDM production was heavy during the holiday 
weekend, but activity slowed this week as Class I sales recovered. Some 
producers   have placed limits on spot offers, as most transactions are 
contractual. Demand is fair. Currently, the majority of buyers are 
cautious ahead of 2016 needs, and not aggressive with securing loads. 
Regional producers? stocks are comfortable, at light to moderate levels. 
High heat NDM prices rose slightly on the bottom of the range. Processors 
focused production over the holiday weekend on low heat nonfat dry milk, 
but some are scheduling high heat production this week as milk intakes 
are reduced. Spot interest is limited. Producers? offerings are mostly 
adequate to fill customer needs. At the CME Group, Grade A NDM closed 
Wednesday at $0.8000, up $0.0700 from last Wednesday.

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .8200 -  .9400          MOSTLY:   .8500 - .8800               
HIGH HEAT:         .9600 - 1.1800                                               


Dairy Market News Reporting Change Notice

Upon the conclusion of the October 2015 industry comment period and a 
review of industry responses, Dairy Market News (DMN) is updating the 
Dairy Market News Working Guidelines, effective Report 1, January 2016. 
The updates will 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. 

Link to current and updated DMN working guidelines:
http://www.ams.usda.gov/market?news/individual?dairy?market?news?commodity?
reports

December 1, 2015
 

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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