MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  January 14, 2016 (REPORT 2)                                       


NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: The Central region low/medium heat nonfat dry milk range price 
series widened as prices adjusted to various indices and current buyer 
interest. The mostly series is unchanged to lower. Buyer interest is 
light. Sellers indicate buyers are focusing on price more strongly than 
date of manufacture or packaging in some instances. The market has yet to 
supply a need for buyers to get ahead of a steady upward price trend, 
thus buyers are content to shop from week to week. Production of 
low/medium heat NDM is active throughout the region. With seasonally 
light interest in condensed skim from the Class II market sector, this is 
leaving condensed skim volumes in balancing plants that must clear 
through the dryers. Low/medium heat NDM production is active. 
Manufacturers' inventories are growing as demand is lighter than weekly 
production. High heat NDM prices are steady on light trading. Bakery 
accounts have yet to pull on high heat NDM inventories for the spring 
baking season. Even pallet-size demand is light. High heat NDM production 
is limited to occasional runs, as contract needs demand. Inventories are 
steady.
EAST: Low/medium heat nonfat dry milk prices are mixed. NDM production 
continues to be active. Producers' low/medium NDM stocks are growing, as 
moderate trading takes place. Contracts are satisfied on time, with spot 
purchases being made primarily on a hand-to-mouth basis and/or less than 
truck load basis. In general, buyer transactions are limited as the NDM 
settles. Prices for high heat nonfat dry milk in the East are unchanged. 
A decrease in manufacturing milk supplies generated an opportunity for 
production of high heat NDM at several regional balancing plants this 
week. Supplies are tight. Buyer interest from bakeries has declined. The 
market undertone is steady.
                            
F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .7700 -  .8775          MOSTLY:   .8100 - .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-
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