MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  January 21, 2016 (REPORT 3)                                       


NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                

CENTRAL: Central low/medium heat nonfat dry milk prices are lower on an 
unsettled market. Recent price announcements from offshore auctions 
undermined any inkling of this market entering steady to firm territory, 
according to market participants. Through Wednesday of this week at the 
CME Group, NDM prices are unchanged to lower. However, there is growing 
interest from the broker/trader community in extending some contracts 
into Q3/Q4 as downside risks appear to be manageable.   Low/medium heat 
NDM production at all regional plants is very active as some cheese plant 
operators push back on discretionary milk loads. Low/medium heat NDM 
inventories are building steadily. High heat NDM prices are unchanged on 
light interest outside of contracts. Manufacturers indicate drying 
schedules include high heat NDM production on an intermittent basis, and 
inventories are light.
EAST: Prices for low/medium heat nonfat dry milk are lower in the mostly 
series, on relatively light f.o.b. spot trading. Dryer schedules had been 
rather active at most nonfat dry milk producing plants. However, a recent 
snow storm and reports of another one developing, leading into this 
weekend, have pressured bottlers to add to their milk receipts. As a 
result, East manufacturers of NDM are realizing a modest falloff in NDM 
output. Buying interest is light to moderate, as market participants in 
general are comfortable with shopping the market for the lowest prices 
available. Sources note NDM inquiries are predominately from brokers. 
Producers' stocks are fairly balanced, with supplies being built around 
current and future needs. High heat NDM prices are steady. Production is 
intermittent. High heat NDM availability is adequate for customer needs. 
Spot market acquisitions are limited. The market undertone is steady.

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .7500 - .8700          MOSTLY:   .8000 - .8300               
HIGH HEAT:         .9000 - 1.1500                                                                                                                                                                                                            

1100CT Daniel.Johnson/Janet.Linder@ams.usda.gov
USDA/AMS/Dairy Market News, Madison, Wisconsin (608)557.7000
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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