MD_DA650 DA MD DA650 Nonfat Dry Milk - Central and East MADISON, WI. March 10, 2016 (REPORT 10) NONFAT DRY MILK - CENTRAL AND EAST CENTRAL: In the Central region, prices for low/medium heat nonfat dry milk are mostly steady on an unsettled market. As buyers witness the recent price changes on various indices, they are less willing to enter the market for what they view as prices mimicking the higher side of recent trading versus middle of the road prices. The repeating cycle of higher and lower prices, in fairly rapid succession, has buyers wary of overpaying for NDM in a market seeking firm backing. Low/medium heat NDM production is steady to higher as milk intakes trend upward. Manufacturers are concentrating on clearing intakes through low/medium heat NDM production. With a few plants taking down time to change dryer socks and perform other maintenance, milk is moving around within the region to find processing room. High heat NDM, Central, prices are steady to lower on light interest. Many end users are receiving needed loads via contract arrangements. NDM producers are splicing in runs of high heat, as needed, near the ends of low/medium heat runs to keep from losing production time. The CME Group monthly average price for Grade A NDM during February was $0.7410, compared to $1.1067 a year ago. The DMN monthly average of the mostly price series for Central and East low/medium heat NDM during February was $0.7860, compared to $1.0750 a year ago. The February monthly average of the range price series for Central and East high heat was $1.0220 compared to $1.1745 a year ago. DAIRY PRODUCTS: The NASS Dairy Products report noted U.S. human NDM production during January in the Central region totaled 25.5 million pounds, 2.7 percent lower than one year ago. Total U.S. human NDM production during January was 136.2 million pounds, 17.4 percent lower than last year. Total U.S. NDM human month ending stocks for January were 226.6 million pounds, 5.7 percent below a year ago. EAST: In the East region, prices are steady to lower. Production of low/medium heat nonfat dry milk is increasing as milk production levels rise. Domestic demand for low/medium nonfat dry milk is steady. End users, in general, are only buying supplies they need; otherwise, buyers are holding to previously contracted loads. International interest is active. Stocks of low/medium NDM are moderate to growing. The region saw a slight increase in high heat nonfat produced at some plants. Inventories are sufficient for fulfilling customer orders. Prices for high heat nonfat dry milk changed lower at the bottom of the range. The February 2016 DMN monthly average for the Central and East low/medium heat nonfat dry milk range price series is $0.7894 compared to $1.0707 a year ago. Wednesday at the CME Group, Grade A NDM closed $0.7450, down $0.0350 from last Wednesday. The CME Group, February 2016 monthly average price for NDM is $0.7410, compared to $1.1067 the previous year. DAIRY PRODUCTS: According to NASS, the Atlantic region's production of human nonfat dry milk in January 2016 totaled 29.4 million pounds, unchanged from the previous year, but 3.2% less than December 2015. The January 2016 U.S. production of skim milk powder, totaled 51.2 million pounds, 17.3% above a year ago and 17.9 above December 2015. F.O.B. CENTRAL/EAST: Includes EXTRA GRADE and GRADE A LOW/MEDIUM HEAT: .7100 - .8400 MOSTLY: .7500 - .8100 HIGH HEAT: .8500 - 1.1000 U.S. NDM Exports, H.S. Code 0402100000(FAS) 2016 Exports % Change From (Million Lb.) 1 Year Ago January Total 94.6 + 23 TOTAL, JAN 94.6 + 23 1 Mexico 43.9 + 6 2 Philippines 14.3 + 53 3 Peru 6.9 + 53 4 Indonesia 6.6 + 80 5 Vietnam 6.3 + 520 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