MD_DA650 DA MD DA650 Nonfat Dry Milk - Central and East MADISON, WI. August 11, 2016 (REPORT 32) NONFAT DRY MILK - CENTRAL AND EAST CENTRAL: Low medium heat nonfat dry milk prices are lower on the bottom end of the range price series but hold steady in the mostly price series. As low/medium heat NDM prices fall on the CME, several market participants report increased inquiries from buyers. Sales occurring at the lower end of the market are reportedly Q1/Q2 production. Some manufacturers are trying to move large amounts of inventory, resulting in active trading at this price point. Sales continue to be made at the top end of the market for Q3 production. Buyers seeking specific brands are willing to make purchases at the top end of the market. Production is active to marginally lower as Central region milk production declines. Inventories are generally long. Several cheese manufacturers report fortifying with low/medium NDM, aiding in some inventory relief. International interest is strong. The market undertone is steady. High heat nonfat dry milk prices hold steady on light trading. Production is steady this week and the majority of dryer runs are based on contractual needs. Inventories are tight and manufacturers report little to no spot load availability. Buyers continue to honor contracts and express light interest in additional loads. The market undertone is firm. The NASS Dairy Products report noted U.S. human NDM production during June 2016 in the Central region totaled 29.8 million pounds, 12.1 percent higher than one year ago. Total U.S. human NDM production during June 2016 was 143.6 million pounds, 13.2 percent lower than last year. During January-June 2016, U.S. human NDM production totaled 928.2 million pounds, 9.5 percent less than the same time span in 2015. Total U.S. NDM, human, month ending stocks for June were 237.6 million pounds, 9.4 percent below a year ago EAST: Low/medium heat nonfat dry milk prices are lower at the bottom of the range, but held steady at the top. The mostly price series remained unchanged. Low/medium heat nonfat dry milk production is steady to lower at several locations and below plant capacity, due to milk intakes and milk sales to Class I processors. Some producers are selling minimal low/medium NDM into the spot market, and only at offered prices near the high end of the range. Contract sales account for the majority of low/medium heat NDM transactions. Most buyers are still unwilling to expand inventories at this time. Domestic demand is about steady with last week, but there are some indications of growing buyer interest as the fall baking season approaches. Demand is fair to good in export channels. Prices for high heat nonfat dry milk remain unchanged from last week. Demand is currently quiet. Seasonal interest from baked goods and mixed accounts is expected to develop beyond current demand. Spot offerings are light. Wednesday at the CME Group, Grade A NDM closed at $0.8450, up $0.0050 from last Wednesday. The Foreign Agricultural Service (FAS), reports that June 2016 U.S. nonfat dry milk exports totaled 93.8 million pounds, a 9% decrease from a year ago. F.O.B. CENTRAL/EAST: Includes EXTRA GRADE and GRADE A LOW/MEDIUM HEAT: .8050 - .9100 MOSTLY: .8475 - .9000 HIGH HEAT: .9350 - 1.0200 U.S. NDM Exports, H.S. Code 0402100000(FAS) 2016 Exports % Change From (Million Lb.) 1 Year Ago June Total 93.8 - 9 TOTAL, JAN - JUN 569.0 - 11 1 Mexico 248.4 -- 2 Philippines 89.8 + 6 3 Indonesia 46.0 - 9 4 Pakistan 29.6 - 12 5 Malaysia 23.9 - 22 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- home