MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  August 04, 2016 (REPORT 31)                                       

NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Low/medium heat nonfat dry milk prices are lower this week. Several 
industry contacts report six month or older low/medium heat NDM being 
offered on the spot market at prices towards the lower end of the range. 
However, fresher low/medium heat NDM is moving at higher prices. Inventories 
are long in the Central region. Some manufacturers faced with large stocks 
are using low/medium heat NDM to fortify other dairy products as a way of 
managing stock levels. Several market participants report inventory 
pressures and the need to make sales in order to free up space in warehouses 
for new production. Overall, low/medium heat NDM production is steady this 
week. Demand is mixed. Industry contacts feel many buyers are content with 
their current low/medium heat NDM stocks and are choosing to sit on the 
sidelines for the time being. The market undertone is steady. High heat NDM 
prices hold steady this week on light trading. Production is steady to 
slightly higher. A few manufacturers are stepping up production and are 
producing more high heat NDM than is needed for contractual needs. However, 
these manufacturers express little interest in moving any high heat NDM 
loads outside of contracts right now. Due to this, inventories may increase 
slightly. Overall, inventories for high heat NDM are tight in the Central 
region. Demand is steady. The market undertone is firm. The DMN monthly 
average of the mostly price series for Central and East low/medium heat NDM 
during July was $0.8774, compared to $0.8583 a year ago. The July monthly 
average of the range price series for Central and East high heat was $0.9531 
compared to $1.0375 a year ago. The CME Group monthly average price for 
Grade A NDM during July was $0.8638, compared to $0.7622 a year ago. 
EAST: F.O.B spot prices for eastern low/medium nonfat dry milk (NDM) shifted 
lower on the range and mostly series. Trading activity has been light to 
moderate throughout the week. At this point, the market undertone is 
unsettled, according to industry participants. Demands from bakers and 
cheese manufacturers is fair to good. Eastern NDM production is slightly 
lower as regional farm milk intakes continue dropping. Inventories are 
steady. High heat nonfat dry milk prices are unchanged this week. Interest 
from the bakery sector is active. Drying schedules are irregular in most 
processing plants. Inventories are tight. Therefore, sales in the f.o.b. 
market are light.


F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .8125 - .9100          MOSTLY:   .8475 - .9000               
HIGH HEAT:         .9350 - 1.0200                                               

1100CT Angel.Teran@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-
home