MD_DA650 DA MD DA650 Nonfat Dry Milk - Central and East MADISON, WI. February 11, 2016 (REPORT 6) NONFAT DRY MILK - CENTRAL AND EAST CENTRAL: Central low/medium heat nonfat dry milk prices are mostly lower. The market tone is mixed as some participants see encouraging price trends in the futures market. Offers from manufacturers are variable as some are building inventories with confidence based on use of the futures/hedging. Other producers indicate they would like to sell additional NDM, but are finding limited interest in the marketplace. Low/medium heat NDM production is active throughout the region as milk intakes step seasonally higher. With progressively lighter interest from Classes I/III manufacturers, more farm milk is clearing through balancing plants into NDM. Low/medium heat NDM inventories are building. High heat nonfat dry milk prices are unchanged on light trading. Inventories are steady. Most sales are based on contracts. Production is light as manufacturers are opting to maximize clearing condensed skim through low/medium NDM production. EAST: The f.o.b. price for East nonfat dry milk moved lower in a weak market. Low/medium heat nonfat production is steady. Drying is heavy, 6 to 7 days at some plants, although increasing interest in condensed skim is easing the burden. The Eastern spot market in general is quiet, apart from a block of NDM exchanging hands. Discussions that are ongoing reflect a lack of buyer interest at this point. Some expect prices to move lower and are careful not to over-expand stocks in a downward trending market. However, trades are moving through contract accounts to satisfy customers' seasonal confectionary and bakery needs. Processors report continued second quarter interest from the market. The market undertone is weak. High heat NDM prices are steady. Demand is light and mainly being filled by contracted volumes. Occasional production is adequate as dryers become available for current and short-term order fulfillment. Wednesday at the CME Group, Grade A NDM closed at $0.7500, up $0.0400 from last Wednesday. F.O.B. CENTRAL/EAST: Includes EXTRA GRADE and GRADE A LOW/MEDIUM HEAT: .7100 - .8500 MOSTLY: .7500 - .8200 HIGH HEAT: .9000 - 1.1500 U.S. NDM Exports, H.S. Code 0402100000(FAS) 2015 Exports % Change From (Million Lb.) 1 Year Ago December Total 101.8 + 35 TOTAL, JAN -DEC 1,234.0 + 3 1 Mexico 556.5 + 24 2 Philippines 142.5 - 9 3 Indonesia 81.8 - 18 4 Vietnam 73.3 - 4 5 China 64.4 - 38 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- home