MD_DA650 DA MD DA650 Nonfat Dry Milk - Central and East MADISON, WI. January 07, 2016 (REPORT 1) NONFAT DRY MILK - CENTRAL AND EAST CENTRAL: Prices for Central low/medium heat nonfat dry milk are unchanged to lower on a weak market. With prices shifting lower on some U.S. and global indices, and strong U.S. currencies, market participants indicate this market is facing many challenges to regain footing. Although some larger end users have annual or multiyear contracts in place, there are many mid and small size end users who are content to shop on a week to week schedule. Low/medium heat NDM production in the Central region is active, but below the output of the preceding holiday week. Manufacturers are glad to see the end of the holiday production schedules, as they are hard on staff and equipment. Inventories are building steadily. High heat NDM prices, Central, are steady. With the winter holiday season over, many bakery sector buyers are out of the market until spring. Demand is light, and some sales are on pallet-sized quantities. Production is light. Inventories are comfortable for this point in the year. The NASS Dairy Products report noted U.S. human NDM production during November in the Central region totaled 27.2 million pounds, 10.6 percent higher than one year ago. The CME Group monthly average price for Grade A NDM during December was $0.7685, compared to $1.0506 a year ago. The DMN monthly average of the mostly price series for Central and East low/medium heat NDM during December was $0.8541, compared to $1.1639 a year ago. The December monthly average of the range price series for Central and East high heat was $1.0366 compared to $1.3527 a year ago. DAIRY PRODUCTS: Total U.S. human NDM production during November was 126.1 million pounds, 16.9 percent lower than last year. During January- November 2015, U.S. human NDM production totaled 1.667 billion pounds, 4.1 percent more than the same time span in 2014. Total U.S. NDM human month ending stocks for November were 200.5 million pounds, 8.4 percent below a year ago. EAST: Prices for low/medium heat nonfat dry milk in the East region are lower in a downward trending market. Drying operations in the region ran at capacity over the holiday weekend into the first half of this week. Low/medium nonfat dry milk production schedules are easing somewhat and will likely return to normal as the week advances, due to increased Class I needs. Resale price inquiries are frequent, however, little product is moving, as is the case in the f.o.b. spot market. Buyers are making purchases of low/medium NDM around their immediate needs, while searching out better price incentives, as a fairly competitive market develops. Producers' stocks are building. Sources report that interest is growing for Q2 needs, while describing Q1 as somewhat sluggish. The market undertone is weak. Eastern high heat nonfat dry milk prices are unchanged in a quiet market. Production schedules are sporadic as producers manage schedules aimed at throughput. Buyer interest is light. Inventories are adequate for current needs. The December 2015 Dairy Market News monthly average for the Central/East low/medium heat nonfat dry milk range price series is $0.8509 compared to $1.1755 a year ago. DAIRY PRODUCTS: According to NASS, the Atlantic region's production of human nonfat dry milk in November 2015 totaled 18.5 million pounds, 21.5% less than a year ago and 15.1% less than the previous month. The November 2015 U.S. production of skim milk powder, totaled 44.1 million pounds, 44.1% more than a year ago and 11.1% more than the previous month. F.O.B. CENTRAL/EAST: Includes EXTRA GRADE and GRADE A LOW/MEDIUM HEAT: .7850 - .8700 MOSTLY: .8200 - .8500 HIGH HEAT: .9000 - 1.1500 1100CT Daniel.Johnson/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