MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  March 03, 2016 (REPORT 9)                                         

NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
                                                                                
CENTRAL: Central low/medium heat nonfat dry milk prices are steady to 
higher on a mixed market. Industry participants noted some price 
creep on various trading platforms in the last few days. However, 
interest at higher prices from buyers purchasing outside the trading 
platforms has been more difficult to find. Brokers/traders report end 
users were loath to finalize purchases before the upward price 
movement. With the advent of spring flush and upcoming active NDM 
production season, buyers are not rushing to purchase NDM at higher 
prices. Low/medium heat NDM production is active in the Central 
region. Demand from Class II has yet to fully emerge, so balancing 
plants are running hard to keep up with intakes. A few plants are 
finding opportunities to build NDM inventories through the purchase 
of spot condensed skim loads. Low/medium heat NDM inventories are 
building. High heat NDM prices in the Central region are unchanged to 
lower on limited interest outside of contracts. However, there may be 
some building interest from Eastern buyers unable to obtain loads 
from manufacturers in that region. This is a result of heavy intakes 
at various Eastern plants, and plant managers there opting to clear 
condensed skim volumes by running low/medium heat NDM. Central region 
production is intermittent. Central high heat NDM holdings are 
generally light to moderate.
EAST: Prices for low/medium heat nonfat dry milk rose slightly on 
weekly f.o.b. spot trading. The region continues to see active 
production of low/medium nonfat dry milk. However, some balancing 
operations note slight reductions in nonfat dry milk dryer usage, as 
seasonal yogurt production develops and pulls on condensed skim 
supplies. Low/medium NDM holdings extend beyond contracted volumes, 
as those inventories continue to build. Some East producers are 
displaying uneasiness with current inventory levels. As a result,    
one option is to use totes when packaging NDM, an approach expected 
to encourage added NDM sales, while lessening inventory. In general, 
NDM movement is slow but improving. The market is unsettled. High 
heat nonfat dry milk prices are steady to lower. Some manufacturers 
are on steady production schedules in preparation for holiday baking 
demand. Inventories, in general, are light. The bulk of high heat 
production is committed to near term customer needs. Wednesday at the 
CME Group, Grade A NDM closed $0.7800, up $0.0325 from last 
Wednesday.
  
F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .7500 -  .8400          MOSTLY:   .7600 - .8100               
HIGH HEAT:         .8800 - 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-home