MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  May 19, 2016 (REPORT 20)                                          

NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Prices for low/medium heat nonfat dry milk in the Central 
region are steady to higher. Industry contacts feel that prices are 
firming. Production for low/medium heat nonfat dry milk is steady. 
The low end of the price range reflects 3-6 month old loads 
manufacturers are moving. Fresh nonfat dry milk is selling at a 
higher price point and several producers report strong sales. Other 
manufacturers report little success moving stocks outside of 
contracts at the current price point. Monday and Tuesday CME Group 
saw some resistance to rising NDM prices. However, Wednesday NDM 
prices increased $.0200. Overall, the nonfat dry milk market is 
mixed. Inventories are steady to building. Exports are rising as 
industry participants report growing interest from the international 
markets. Central high heat NDM prices are steady to higher in a quiet 
market. Manufacturers are producing very little high heat outside of 
contractual needs. Some processors report comfortable inventories 
while others feel stocks are tight.  
EAST: In the East region, low/medium heat nonfat dry milk prices are 
steady to higher in the mostly price series. Higher milk production 
in the region is resulting in more condensed skim available for 
drying. While active condensed skim sales decrease overall drying 
activity at several East region plants, production remains steady at 
increased levels. Producers' stocks are adequate to heavy. As the NDM 
market firms, some market participants are puzzled as to the current 
trend. Thus, as light to moderate trading occurs, some users and 
traders are waiting for a more defined market trend that communicates 
supply/demand fundamentals. Some sources suggest that current market 
prices prompt increased resell activity. Low/medium heat NDM customer 
commitments are clearing as contracted. International market interest 
is good, primarily to Mexico. The market undertone is steady to firm. 
High heat prices are steady to higher. In most cases, intermittent 
production is moving to customers. However, this week high heat NDM 
runs are given attention by manufacturers who are increasing stocks, 
as supplies in the region are tight. The market undertone is steady 
to unsettled. 

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .7500 - .8300          MOSTLY:   .7600 - .8000               
HIGH HEAT:         .8900 - .9700                                                

1100CT Daniel.Johnson@ams.usda.gov/Amy.L.Schmitz@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