MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  December 17, 2015 (REPORT 50)                                     


NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Central nonfat dry milk prices, low/medium heat, are unchanged 
to lower, mirroring movement on various indices. Although sales are 
ongoing, market participants characterize the overall tone as sluggish. 
Buyers are content to shop on a just in time basis for light to moderate 
needs. However, several end users with specific brand/location/packaging 
needs have put together at least partial supply contracts for 2016. 
Low/medium heat NDM production is active and increasing through internal 
increases in milk volume intakes. Also, as some milk buyers cut back on 
production of seasonal products, lower milk volumes are exiting supply 
plants. Low/medium heat NDM inventories are building incrementally at 
most locations. High heat NDM prices are unchanged to lower. Spot market 
activity is light as demands from the holiday-related baking sectors 
trail off. Availability is steady. Production is light as plant operators 
are focusing on clearing milk intakes quickly.
EAST: Prices for Eastern low/medium nonfat dry milk are lower on light 
f.o.b spot trading. Milk supplies re-directed from Class I usage, as 
demand diminishes, are aiding a low/medium heat nonfat dry milk 
production spurt. As well, condensed skim reductions from end-users 
accounts will likely add to output. This movement should continue into 
next week. Plant managers at some operations in the East are now prepared 
to run full schedules, having resolved dryer mechanical issues. 
Currently, demand is light. Brokers not wanting to carry product valued 
higher than current market prices are anxiously looking to move those 
holdings prior to the New Year. There is uncertainty for market 
participants hoping to maximize their 2016 buying/selling position, as 
they ponder negotiating a contract or not. High heat prices are steady to 
lower. Producers' high heat nonfat dry milk holdings are generally 
available for supplying their established customer needs. Otherwise, 
availability is sporadic. The market undertone is steady to lower.  

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .8000 - .8800          MOSTLY:   .8300 - .8700               
HIGH HEAT:         .9000 - 1.1500                                               
                                                                                
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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