MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  April 28, 2016 (REPORT 17)                                        


NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Prices for low/medium heat nonfat dry milk in the Central 
region adjusted higher on the bottom of the range and throughout the 
mostly price series, following changes in various indices. The market 
tone is mixed. From an historical perspective, current Central NDM 
pricing is trending below prices of the last several years. That 
circumstance may be enough to clear some NDM to buyers willing to 
build stocks. However, other buyers are willing to purchase loads 
intermittently, prompted by changes to various indices or on a just 
in time basis. These purchasing methods are keeping some additional 
NDM in manufacturers' inventories, coupled with additions to stocks 
on hand from active NDM production. High heat NDM prices are lower to 
sharply lower on the top of the range. Buyers indicate that while 
some brands try for price premiums, those premiums are less viable 
during a market awash with milk intakes. F.O.B. spot interest is 
light from bakery accounts, and steady from dry mix manufacturers. 
Many of those accounts are served through contracts. High heat NDM 
production is sporadic as processors focus on clearing milk intakes.
EAST: In the Eastern region, low/medium heat nonfat dry milk prices 
moved higher, as the market undertone varies. Some market 
participants suggest a strengthening market based on domestic and 
global perceptions. Manufacturers are producing low/medium NDM at 
increasing rates, comparable to milk output in the region. Increasing 
condensed skim orders into Class II use is freeing available dryer 
time. Producer stocks are moderate to heavy, while supplies are 
notably held with confidence. Some producers would like to move 
prices higher as buyers push back. Market participants are optimistic 
that buyer/seller positions will develop that encourage active 
trading. This week, domestic demand is light to fair, as market 
participants attended an annual conference. Export demand is fair to 
good. Loads clearing to international markets have eased growing 
inventories at some plants. Prices for high heat NDM moved abruptly 
lower at the top of the range on f.o.b. spot sales. East region 
sources have suggested some tightness in supplies. At the CME Group, 
Grade A NDM closed Wednesday at $0.7750, up $0.0275 from last 
Wednesday's close.

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .7150 - .8250          MOSTLY:   .7500 - .7800               
HIGH HEAT:         .8700 - .9700                                                

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