MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  January 28, 2016 (REPORT 4)                                       


NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: The Central low/medium heat nonfat dry milk market is mixed. 
Early in the week, prices were steady to lower, but midweek prices 
rallied somewhat. On the strength of midweek changes to the futures, some 
brokers and traders pulled back offers to customers as they take time to 
reevaluate near and midterm price trends. Manufacturers report interest 
is sluggish. Buyers have multiple sourcing options and they are willing 
to compare offers, as necessary, before committing to purchases. 
Low/medium NDM production is active throughout the region, but generally 
below full capacity. Low/medium heat nonfat dry milk inventories are 
building incrementally. Central high heat NDM prices are unchanged to 
higher on light interest. End users generally have contracts for needed 
Q1 inputs, but there is some f.o.b. spot interest geared toward the 
upcoming holiday baking season. Production is limited and scheduled 
around the low/medium heat drying schedule. Inventories are generally 
tight.
EAST: Nonfat dry milk prices in the East are higher in the range, but 
steady in the mostly series. F.o.b. spot prices begin the week steady but 
strengthened following midweek buyer/seller negotiations. Lighter milk 
receipts moving into butter and powder plants over the weekend and into 
the first of the week lowered East region low/medium nonfat dry milk 
production. Manufacturers' receiving calls from buyers, note that 
interest primarily entails near-term needs, as those buyers looked to 
capitalize on lower pricing. Overall, interest is light. Stocks of 
low/medium are moderate to heavy and expected to build. The market 
undertone is unsettled. High heat NDM prices are steady to higher in 
light trading. Production is typically scheduled around customer needs.  

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .7600 -  .8750          MOSTLY:   .8000 - .8300               
HIGH HEAT:         .9150 - 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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