MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  April 21, 2016 (REPORT 16)                                        


NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: In the Central region, low/medium heat nonfat dry milk 
prices are unchanged to higher. The Global Dairy Trade (GDT) reported 
higher prices for three contract periods (one contract period was 
unchanged and there were lower prices in two contract periods), and 
the CME Group Grade A NDM trading notched some gains by midweek. 
Interest, though, is generally lackluster outside of contracts as 
buyers are able to compare offers from multiple sources, both f.o.b. 
and resale. Offers of slightly aged NDM are also popping up from 
various resellers. Market participants indicate while bulk buyers may 
be ready to take on inventories at these historically low prices, 
many other end users feel they can comfortably wait for lower prices. 
Manufacturers are taking multiple tacks to keep up with milk intakes. 
For some, clearing condensed skim volumes into low heat NDM is the 
route generating the best use of time and facilities. A few plant 
operators are using production of other powders as a way to clear 
condensed skim and butterfat. Prices for high heat NDM are unchanged 
on a quiet market. Bakery accounts have fulfilled much of their needs 
ahead of the holidays to meet consumer demand. High heat NDM 
production is lower as some plant managers want to maintain the 
highest level of condensed skim throughput on an hourly basis. This 
means high heat production is being pushed further into dryer 
schedules for the month.
EAST: Prices for low/medium heat nonfat dry milk are steady to higher 
in the mostly series. Some market participants feel demand for NDM 
may increase in the short term, as buyers attempt to stay ahead of a 
potential price increase driven by future's pricing. Production of 
low/medium nonfat dry is very active, following seasonal milk outputs 
that are at/near the peak. Market participants are not very confident 
of the overall market picture, which centers on both strong domestic 
milk supplies and nonfat dry milk production. Stocks are adequate to 
strong. The market undertone is mixed. Eastern high heat nonfat dry 
milk prices are steady to higher. Production runs are intermittent to 
meet near-term customer needs. At the CME Group, Grade A NDM closed 
Wednesday at $0.7425, up $0.0325 from last Wednesday's close.

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .7100 - .8250          MOSTLY:   .7300 - .7600               
HIGH HEAT:         .8800 - 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