MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  August 25, 2016 (REPORT 34)                                       

NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                                                                                            
CENTRAL: Low medium heat nonfat dry milk prices are mixed this week. The 
range price series moved higher on the low end of the range while the top 
end of the range came down two cents. The mostly price series moved higher 
on both ends to capture where the majority of spot sale activity is 
occurring. Market participants report growth in buyer interest this week. In 
several instances, contacts report calls from buyers looking to secure 
contracts through the end of 2016. Some cheese manufacturers are reportedly 
interested in making low/medium heat NDM purchases in the short term to aid 
with seasonally decreasing yields. International interest remains active and 
export sales are strong. Inventories are mostly long in the Central region. 
However, as milk production declines, milk is being diverted away from 
dryers. This, in return, is helping manufacturers manage long low/medium 
heat NDM inventories. The market undertone is mixed. High heat nonfat dry 
milk prices are steady on the bottom end of the price range series but 
higher on the top. Changes on contract indices pulled prices higher in 
several instances. Production is intermittent and based largely on 
contractual needs. Many manufacturers report having little to no inventory 
and are not currently offering any high heat NDM on the spot market. 
Inquiries outside of contracts are light. The market undertone is steady. 
EAST: F.O.B spot prices for eastern low/medium nonfat dry milk (NDM) are 
mixed on the range, but higher on the mostly series. Domestic trading 
activity has been moderate throughout the week. According to industry 
participants, the current market undertone is unsettled. Demands from bakers 
and cheese manufacturers are fair to good. Eastern NDM processing is 
slightly lower as less condensed skim volumes are moving into dryers. 
Inventories are mixed across the eastern region. This week, high heat nonfat 
dry milk prices are steady to higher. Interest from the bakery sector is 
active. Drying schedules are uneven in most processing plants. Inventories 
continue to be tight. Therefore, sales in the f.o.b. spot market are 
limited.
F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .8475 - .9300          MOSTLY:   .8700 - .9200               
HIGH HEAT:         .8800 - 1.0500                                               


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-
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