MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  July 14, 2016 (REPORT 28)                                         


NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Low/medium heat nonfat dry milk prices are steady this week on 
light trading. Production is active in the Central region. Farm level milk 
output is slowly decreasing as the region faces prolonged hot, humid 
weather. Manufacturers continue to make low/medium heat NDM a priority when 
scheduling dryer runs. Demand is mixed. Some buyers are cautious in the 
current market and are choosing to stay on the sidelines. Other industry 
contacts feel demand is picking up and report growing inquiries from buyers. 
Inventories in the Central region are generally long. Steady demand and 
active production is building inventories for several manufacturers. Heavy 
stocks have some industry contacts questioning the longevity of firming 
prices. International interest is steady. The market undertone is steady. 
High heat nonfat dry milk prices in the Central region are unchanged this 
week. Very few manufacturers are producing any high heat NDM that is not 
already committed. Inventories are tight and many manufacturers report 
having no availability for spot load sales. The market undertone is steady. 
EAST: Prices for low/medium heat nonfat dry milk (NDM) are unchanged in both 
price series. Production remains active. Marginal declines in milk 
production have offered limited resistance to steady drying rates of 
low/medium nonfat milk at some facilities. NDM is moving with improved 
demand from cheese manufacturers as needed for product fortification and 
from ice cream through contracts. Manufacturers continue to add to 
increasing stocks. The market expectations of a noteworthy price drop, at 
this point, is viewed as doubtful by some in the market, as low/medium heat 
NDM forward contracts expand. Global interest is good. High heat NDM prices 
are unchanged again this week on very light trading. Production is on an as-
needed basis to meet contractual needs. Most manufacturers' inventories are 
adequate for near term contracts. The market undertone is currently steady. 
 
F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .8300 - .9600          MOSTLY:   .8500 - .8900               
HIGH HEAT:         .8800 - .9800                                                                                                                                

1100CT daniel.johnson@ams.usda.gov/Amy.L.Schmitz@ams.usda.gov
USDA/AMS/Dairy Market News, Madison, Wisconsin (608)557.7006
Dairy Market News website: http://www.ams.usda.gov/market-news/dairy
Dairy Market News database portal: http://www.marketnews.usda.gov/mnp/da-
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