MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  February 18, 2016 (REPORT 7)                                      


NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Central low/medium heat nonfat dry milk prices are unchanged to 
higher as some contract pricing adjusted to changes in variable indices. 
The market continues to look, though, for a measure of support from which 
to rebuild on a long term basis. However, active production in the U.S. 
and other global dairy centers and strong U.S. currency values continue 
to weigh upon each uptick in price. Following that pattern, an early in 
the week price rally on the CME Group trading site did not hold through 
midweek. Low/medium heat NDM production is active throughout the Central 
region. Some manufacturers are diverting condensed buttermilk away from 
the dryers to allow more time for NDM production. Inventories are 
building. High heat nonfat dry milk prices, Central, are unchanged to 
higher. Both offers and interest within the f.o.b. spot market are light, 
but bakery accounts are pulling upon Q1 contracts. Production is 
scheduled at intervals, between low/medium heat runs. Inventories are 
light.
EAST: Eastern low/medium heat nonfat dry milk prices are steady to 
higher. Manufacturers' dryer schedules are processing heavy condensed 
skim supplies. In turn, low/medium heat NDM stocks are building. Spot 
market trading is light to fair. Customer contracts are being fulfilled.  
High heat nonfat dry milk market show prices move higher, specifically, 
at the bottom of the range. Production is irregular as heavy condensed 
skim supplies require increasing low/medium heat nonfat dryer time. 
Demand is light, with limited sales currently being reported in the 
region. Stocks are sufficient for near-term customer needs. Wednesday at 
the CME Group, Grade A NDM closed $0.7450, down $0.0050 from last 
Wednesday.
  
F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .7400 -  .8500          MOSTLY:   .7600 - .8200               
HIGH HEAT:         .9500 - 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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