MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  April 14, 2016 (REPORT 15)                                        


NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Prices for Central low/medium heat nonfat moved lower through 
the mostly series on very moderate f.o.b. spot trading. In a somewhat 
quiet market this week, producers noted limited inquiries. However, 
buyers are interested in discounted offering, although a majority of 
purchases being made utilize a hand-to-mouth approach. As well, 
buyers are shopping other regions for competitive prices. Relative to 
low/medium heat NDM production, milk processors are actively drying 
condensed skim as volumes continue to increase with heavy seasonal 
milk output. The low/medium heat NDM market undertone is weak. Prices 
for high heat nonfat dry milk are unchanged. Domestic demand is 
steady. Most high heat NDM manufacturers are working stocks lower 
through contract fulfillment. Production is intermittent based, as 
dryer schedules expand for low/medium heat NDM. 
EAST: The market price for low/medium heat nonfat dry milk in the 
East is lower and the market tone is weak. Inventories of low/medium 
heat NDM continue to expand, as minimal product exchanged hands this 
week in a relative slow market. Spot trading is limited. Buyers seem 
content with minimizing purchases, while waiting for possible lower 
nonfat dry milk prices, as inventory volumes increase. In general, 
aside from contract obligations demand is relatively light. Drying 
operations are actively manufacturing low/medium heat nonfat dry milk 
with increases in condensed skim supplies, as farm milk production 
picks up in the region. Slow condensed skim sales to Class III and 
Class II operations are also adding to dryer volumes. The price for
high heat nonfat dry milk is steady. Production is restricted to 
producers' immediate or near-term needs. Spot loads are available, 
although limited. Inventories are adequate. At the CME Group, Grade A 
NDM closed Wednesday $0.7150, up $0.0250 from last Wednesday's close.

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .7000 -  .8325         MOSTLY:   .7250 - .7600               
HIGH HEAT:         .8500 - 1.0200                                               

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