MD_DA650 DA MD DA650 Nonfat Dry Milk - Central and East MADISON, WI. May 05, 2016 (REPORT 18) NONFAT DRY MILK - CENTRAL AND EAST CENTRAL: In the Central region, low/medium heat nonfat dry milk prices are unchanged to lower in an unsettled market. Prices on various auction sites are mixed. Manufacturers are trying to hold prices steady in the wake of the changes to various indices, but interest from buyers is price sensitive. Other market participants provided additional market views, including the availability of <1 year old loads priced below the current low end of the range. Plentiful milk intakes continue throughout the Central region. Processors are handling volumes to maximize throughput and returns to investment. Class II end users report condensed skim loads are available at a discount to the market. In some cases, condensed skim loads are clearing through to disposal. Overall low/medium heat production is active and inventories are building. Overseas export demand is limited. Sales into Mexico are intermittent. Prices for Central high heat NDM moved higher on the bottom of the range as variable contract prices adjusted to index movement. Most interest is contract driven. Production at many facilities is limited to end-of- day runs. Inventories are light, but generally sufficient to meet near-term obligations. The CME Group monthly average price for Grade A NDM during April was $0.7306, compared to $0.9415 a year ago. The DMN monthly average of the mostly price series for Central and East low/medium heat NDM during April was $0.7530, compared to $1.0059 a year ago. The April monthly average of the range price series for Central and East high heat was $0.9355 compared to $1.1677 a year ago. EAST: Low/medium heat nonfat dry (NDM) milk prices are lower on the range, but unchanged on the mostly series. The market tone is unsettled. Low/medium heat processing continues to be strong in line with the heavy milk production in the East. Inventories are steady to higher in many processing plants. According to some industry participants, f.o.b. spot sales are light as most transactions are moving through contracts. High heat NDM prices are mixed. Sales outside contracts are sporadic. Production is irregular based on filling near-term contractual obligations between parties. Some buyers are having difficulties in finding supplies in the spot market. Inventories are steady to lower. F.O.B. CENTRAL/EAST: Includes EXTRA GRADE and GRADE A LOW/MEDIUM HEAT: .7100 - .8175 MOSTLY: .7500 - .7800 HIGH HEAT: .8800 - .9700 U.S. NDM Exports, H.S. Code 0402100000(FAS) 2016 Exports % Change From (Million Lb.) 1 Year Ago March Total 90.8 - 25 TOTAL, JAN - MAR 276.5 ... 1 Mexico 126.9 - 4 2 Philippines 43.8 + 28 3 Indonesia 15.3 - 10 4 Colombia 11.7 + 268 5 Peru 10.9 + 10 1100CT Angel.Teran@ams.usda.gov/Janet.Linder@ams.usda.gov USDA/AMS/Dairy Market News, Madison, Wisconsin (608)557.7003 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