MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  September 01, 2016 (REPORT 35)                                    


NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                                                                                            
CENTRAL: F.O.B spot prices for Central low/medium nonfat dry milk 
(NDM) vary. Production levels are steady to lower as milk moves to 
bottled milk needs. Contacts note loads of condensed skim are 
clearing to cheese plants for fortifying in some instances. The 
market reports limited to no spot offerings from some suppliers, as 
the market in general observes more activity from market participants 
looking to fill large volumes over multiple months. For the most 
part, purchases are made on as needed bases as the market remains 
unsettled. Stocks are sufficient. Central high heat NDM prices and 
the market undertone seem to indicate some strengthening, while 
following the direction and pace of the low heat NDM market. Buyer 
interest is steady and capturing decent seasonal movement. Offerings 
are light for limited spot needs. Stocks are limited.
EAST: Eastern low/medium heat nonfat dry milk prices are mixed. Class 
I demand continues to impact low/medium heat nonfat dry milk by 
limiting volumes of condensed skim clearing to drying. The rate of 
production dipped even more this week as a few NDM plants in the 
region increased their dryer time for high heat nonfat dry milk 
production. Open sales orders have strengthened since last week for 
some manufacturers. Inventories are adequate for near-term needs. The 
market undertone is unsettled. Prices for high heat nonfat dry milk 
move higher at the bottom of the range, but held steady at the top. 
Some manufacturers note they are in a better position to produce high 
heat NDM, as they prepare for seasonal baking demand. In general, 
interest is currently fair. Inventories vary, as most are light to 
adequate for supplying near-term customer needs. Wednesday at the CME 
Group, Grade A NDM closed at $0.8550, up $0.0075 from last Wednesday.
F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .8300 - .9500          MOSTLY:   .8500 - .9200               
HIGH HEAT:         .9300 - 1.0500                               

1100CT Daniel.Johnson@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