D_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  March 31, 2016 (REPORT 13)                                        

NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: In the Central region, low/medium heat nonfat dry milk 
prices are unchanged to lower. Price changes on various indices and 
auction sites resulted in lower variable contract prices, and spot 
prices shifted lower as buyers are willing to press for discounts. 
Buyers report offers are available from brokers and traders as well 
as directly from manufacturers. With no shortage of offers, buyers 
are pushing for discounts. Low/medium heat NDM production is ongoing, 
with some plant managers stating operations are nearly continuous as 
milk intakes increase seasonally. With an influx of condensed skim 
spot loads from the East and West adding to Central intakes, there is 
growing attention focused on handling holding times. Wait times for 
unloading are also increasing. High heat nonfat dry milk prices are 
steady to lower on light interest. With seasonally active milk 
intakes, high heat production is limited to short windows within the 
active low/medium heat production/dryer servicing rotation. 
Inventories are light to moderate, although a few plant operators 
built inventory ahead of the flush to avoid disrupting the low/medium 
heat NDM production cycle.
EAST: Eastern low/medium heat nonfat dry milk prices moved lower at 
the top of the range. Production levels are trending higher as milk 
output flourishes seasonally. As such, marketing agents are clearing 
condensed skim, well below class, into other regions as loads to 
drying become burdensome. Domestically, low/medium NDM interest is 
light to moderate, and uneven. Spot buying assertiveness is somewhat 
quiet, as price trends remain weak. Prospective buyers typically 
purchase NDM product for immediate needs only. Stocks of low/medium 
heat nonfat dry milk are steadily building. Prices for high heat 
nonfat dry milk declined at the top of the range on lower spot sales, 
after holding steady a number of weeks. High heat NDM production 
focuses on contract obligations, with few additional supplies 
available for the spot market. Domestic demand is light to moderate. 
Stocks of high heat NDM are balanced. Wednesday at the CME Group, 
Grade A NDM closed $0.7150, down $0.0175 from last Wednesday. 

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .7100 - .8325          MOSTLY:   .7400 - .8100               
HIGH HEAT:         .8500 - 1.0400                                               

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