MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  February 04, 2016 (REPORT 5)                                      


NONFAT DRY MILK - CENTRAL AND EAST                                              

CENTRAL: Prices for Central low/medium heat nonfat dry milk are lower on 
a weak market. Buyers report they're receiving block offers from some 
manufacturers in which prices are trending lower. Some manufacturers 
indicate they are rapidly building inventories from week to week. Even as 
contracts are filled, the volumes entering storage are higher than 
volumes leaving. With the region beginning to see steady increases in 
milk production, there is little doubt that inventories will continue to 
build. High heat NDM prices are unchanged to lower on light activity. 
Production is limited as manufacturers focus on clearing intakes. 
Inventories are steady. The CME Group monthly average price for Grade A 
NDM during January was $0.7312, compared to $0.9898 a year ago. The DMN 
monthly average of the mostly price series for Central and East 
low/medium heat NDM during January was $0.8242, compared to $1.0358 a 
year ago. The January monthly average of the range price series for 
Central and East high heat was $1.0270 compared to $1.1831 a year ago. 
The NASS Dairy Products report noted U.S. human NDM production during 
December in the Central region totaled 26.1 million pounds, 2.9 percent 
lower than one year ago. 
DAIRY PRODUCTS: Total U.S. human NDM production during December was 147.1 
million pounds, 10.2 percent lower than last year. During January-
December 2015, U.S. human NDM production totaled 1.813 billion pounds, 
2.8 percent more than the same time span in 2014. Total U.S. NDM human 
month ending stocks for December were 199.4 million pounds, 16.6 percent 
below a year ago.
EAST: Eastern nonfat dry milk prices shifted lower in the mostly series.  
Active low/medium heat production continues at most NDM operations in the 
region. However, lower condensed skim prices have resulted in a reduction 
in NDM dryer volumes at some plants. Trading is somewhat limited in the 
spot market. Some market participants expect sales to remain sluggish 
until spring, while sources note active Q2 and Q3 interest. The market 
undertone is weak. Eastern prices for high heat NDM are steady to lower. 
Production is intermittent as seasonal demand develops. Inventories are 
adequate for customers' near term needs. The market undertone is quiet.  
The January 2016 Dairy Market News monthly average for the Central/East 
low/medium heat NDM range price series is $0.8202 compared to $1.0478 a 
year ago.
DAIRY PRODUCTS:  According to NASS, the Atlantic region's production of 
human nonfat dry milk in December 2015 totaled 29.7 million pounds, 0.4% 
less than a year ago, but 61.2% more than the previous month. The 
December 2015 U.S. production of skim milk powder totaled 45.4 million 
pounds, 5.1% more than a year ago and 1.0% more than the previous month.

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .7350 - .8500          MOSTLY:   .7800 - .8200               
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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