MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  March 17, 2016 (REPORT 11)                                        


NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Prices for Central low/medium heat nonfat dry milk are 
unchanged to lower on a weak market. With recent declining price trends 
in international markets, buyers are shopping cautiously in the domestic 
market. With availability of low/medium heat f.o.b. spot loads from 
numerous producers, as well as offers from resellers, buyers are firmly 
in control of pricing. Low/medium heat NDM production is steady to 
higher. Some manufacturers are trying to staunch the flow of condensed 
skim through the dryers by actively offering spot condensed skim loads. 
There, too, buyers are interested, if the price is right. Longstanding 
cooperative efforts between milk purchasers and milk marketers are 
helping even out the over/under supply situations in various milksheds. 
Within those arrangements, additional milk volumes are clearing into 
Class III production to support steady cheese sales. Inventories are 
building as on-farm milk production ramps up toward the flush. High heat 
NDM prices are unchanged. Some interest into specialty end user accounts 
is picking up seasonally. Stocks on hand are generally sufficient for 
near term interest. Production is generally limited end of run time slots 
so that nothing slows the clearing of condensed skim volumes. 
EAST: Low/medium nonfat dry milk prices are unchanged in the range, 
but steady to lower in the mostly series. Plants continue to report 
active drying in order to clear increasing condensed skim supplies. 
Stocks of low/medium heat NDM, at the producer level, are building as 
uneven demand builds up total regional supplies. To balance growth, 
multi-load offerings at lower prices exist from those manufacturers 
hoping to reduce supply levels. Demand is weak in the spot market as 
buyers/users postpone purchases for better prices. In some instances, 
low/medium NDM interests from export markets are developing around 
competitive pricing. The domestic market tone is steady to weak. High 
heat nonfat dry milk prices are steady. Some larger operations are 
producing high heat NDM weekly, but on limited bases. Inventories are 
light to moderate. Demand is at seasonal levels. Wednesday at the CME 
Group, Grade A NDM closed $0.7375, down $0.0075 from last Wednesday. 

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .7100 -  .8400         MOSTLY:   .7400 - .8100               
HIGH HEAT:         .8500 - 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