MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  July 28, 2016 (REPORT 30)                                         


NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Low/medium heat NDM prices increased in both price series. Prices 
at the high end of the range reflect buyers seeking specific brand and/or 
specification NDM. Sales occurring at the lower end of the price range can 
be attributed to sellers motivated to move inventory and buyers willing to 
purchase NDM that was produced three to six months ago. Central low/medium 
heat nonfat dry milk production is mixed. As milk seasonally tightens, more 
manufacturers are redirecting milk away from the dryer and into production 
of other commodities. Several producers are comfortable with this shift 
because it is an opportunity to manage inventory levels. Industry contacts 
speculate long inventories for end users and brokers alike. Domestic demand 
is light and buyers show little interest in loads outside of contractual 
commitments. International interest is still present and a large amount of 
low/medium NDM sales are being exported. The market undertone is mixed. High 
heat nonfat dry milk prices are steady to higher this week on light trading. 
High heat NDM production is unchanged. Dryer runs are intermittent based 
largely on contracts. Demand is steady. The market undertone is firm
EAST: Low/medium nonfat dry milk prices are higher reflecting adjustments 
applied to some NDM contracts and f.o.b. spot market sales. Low/medium 
nonfat dry milk is seeing slight declines in output rates due to lower farm 
milk intakes into manufacturing and declining component levels caused by the 
existing seasonal conditions. Market participants' interest is lukewarm as 
buyers weigh the question of when to take a position in the market with 
apprehension. Buyers/sellers are under pressure to agree on the value of the 
current market. Hence, manufacturers' stocks are growing as mostly light 
market trading occurs. The NDM market does not show much confidence at this 
point, as the undertone remains unsettled. Eastern high heat nonfat dry milk 
prices are steady to higher. The high heat NDM market tone is showing some 
strength. High heat NDM production continues to be sporadic. Supplies are 
tight, as demand improves around customers' fall baking needs. Some 
processors' in the region have reportedly sold out of high heat NDM stock 
that would normally supply spot market requests. Wednesday at the CME Group, 
Grade A NDM closed at $0.8425, down $0.0200 from last Wednesday.  
 
F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .8375 -  .9400          MOSTLY:   .8700 - .9300               
HIGH HEAT:         .9350 - 1.0200                  

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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