MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  February 25, 2016 (REPORT 8)                                      


NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Prices for Central low/medium heat nonfat dry milk are unchanged 
to lower on the range and lower on the mostly price series on a weak 
market. Changes to various indices prompted lower prices for some 
variable contract loads. Light f.o.b. activity this week was 
counterbalanced by more active trading in the resale markets. Various end 
users reported purchasing fresh Central low/medium NDM via 
brokers/traders at lower prices than had been previously offered through 
direct negotiations with manufacturers. Production of low/medium heat NDM 
is very active throughout the region as milk intake volumes trend 
seasonally higher. Some cheese plants are modifying supply contracts, as 
permitted, to curtail further cheese production during a slump in cheese 
demand. This is leaving additional milk loads to clear through 
butter/powder plants. Low/medium heat NDM inventories are steady to 
building, and manufacturers are taking steps to moderate current 
holdings. 
Prices for high heat NDM, Central, are lower on light trading activity. 
Producers indicate they are splicing in occasional runs of high heat NDM 
to keep up with contract demand. Inventories are light.
EAST: East low/medium heat nonfat dry milk prices are steady to lower, 
with adjustments based on f.o.b. spot load sales and pricing indices. 
Production is seasonally heavy. Dryers are running full schedules at some 
plants. Low/medium nonfat dry milk inventories are steady to building. 
Demand domestically is steady. Sources note market interest is developing 
for chunks of nonfat dry milk. Otherwise, spot market transactions are 
fairly light in the East. The market undertone remains weak. Prices for 
high heat nonfat dry milk are lower on f.o.b. spot sales. Some processors 
are drying uncommitted volumes of high heat NDM with an anticipation of a 
spurt in interest for holiday baking needs. Manufacturer trading is 
limited beyond contractual volumes. The market undertone is steady to 
weak. Wednesday at the CME Group, Grade A NDM closed $0.7475, up $0.0025 
from last Wednesday.
  
F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .7400 -  .8400         MOSTLY:   .7500 - .7900               
HIGH HEAT:         .9000 - 1.1000                                                                                                                               

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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