MD_DA650 DA MD DA650 Nonfat Dry Milk - Central and East MADISON, WI. September 08, 2016 (REPORT 36) NONFAT DRY MILK - CENTRAL AND EAST CENTRAL: Prices for low/medium heat nonfat dry milk are steady to higher in the mostly series, as f.o.b. spot transactions adjusted the bottom of the series. Global price indices sparked buyer interest, as some manufacturers report an increased number of calls. Milk intakes are steady to seasonally lower at various plants, while condensed skim sales remain active, as fewer loads of condensed clear into the Central region. As a result, low/medium heat NDM production is steady to lower. NDM inventories are adequate for near term contracts. Central high heat nonfat dry milk prices, in keeping pace with low/medium heat NDM, moved higher this week. Lower milk volumes have allowed for some increased high heat production as dryers find some available time to increase those inventories. Interest continues to develop with the baking season approaching. The August 2016 Dairy Market News Central/East monthly average for the low/medium heat nonfat dry milk mostly series is $0.8801 compared to $.7643 a year ago. The average for Central/East high heat nonfat dry milk is $0.9704 compared to $.9643 a year ago. The CME Group's, August 2016 monthly average for Grade A NDM is $0.8454 compared to $0.7329 a year ago. The NASS Dairy Products report noted U.S. human NDM production during July 2016 in the Central region totaled 26.9 million pounds, 15.4 percent more than one year ago. Total U.S. human NDM production during July 2016 was 152.9 million pounds, 1.5 percent lower than last year. Total U.S. NDM, human, month ending stocks for July were 250.6 million pounds, 7.2 percent below a year ago. The Foreign Agricultural Service (FAS), reports January-July 2016 U.S. nonfat dry milk exports totaled 674.8 million pounds, down 7% from a year ago. EAST: East region low/medium nonfat dry milk prices saw some slight firmness through the range based on reported f.o.b. spot trading. Manufacturing milk supplies were more readily available over the holiday weekend, resulting in increased drying schedules at some plants. Post-holiday Class I demand is strong throughout the East and squeezes NDM operations' milk supplies, as most schools have re- opened. Low/medium heat NDM operations are seeing heavier pulls from contracts. As well, active condensed skim sales continue to limit NDM spot availability at a few facilities. However, inventories remain sufficient for near term customer needs. High heat NDM prices are rising on less than active spot trading. Customer interest is building on the verge of the fall baking season. Some high heat NDM manufacturers have ramped up production in anticipation of orders. Inventories are adequate for meeting customer obligations. The August 2016 DMN monthly average for low/medium heat nonfat dry milk in the Central/East range series is $0.8732 compared to $0.7817 a year ago. Wednesday at the CME Group, Grade A NDM closed at $0.8975, up $0.0425 from last Wednesday. The CME Group's, August 2016 monthly average for Grade A NDM is $0.8454 compared to $0.7329 a year ago. The Foreign Agricultural Service (FAS), reports July 2016 U.S. nonfat dry milk exports totaled 105.8 million pounds, an 18% increase from a year ago. DAIRY PRODUCTS: According to NASS, July 2016 production of human food nonfat dry milk, in the Atlantic region, totaled 32.0 million pounds, 11.3% below the previous month, but 4.4% above a year ago. The July 2016 U.S. production of skim milk powder totaled 46.3 million pounds, 32.9% above a year ago, but 16.2% less than the previous month. Cumulative U.S. YTD skim milk powder production through July totals 327.7 million pounds, 30.0% higher than 2015. F.O.B. CENTRAL/EAST: Includes EXTRA GRADE and GRADE A LOW/MEDIUM HEAT: .8500 - .9600 MOSTLY: .8800 - .9200 HIGH HEAT: .9800 - 1.0700 U.S. NDM Exports, H.S. Code 0402100000(FAS) 2016 Exports % Change From (Million Lb.) 1 Year Ago July Total 105.8 + 18 TOTAL, JAN - JULY 674.8 - 7 1 Mexico 289.2 - 1 2 Philippines 102.4 + 11 3 Indonesia 62.9 + 15 4 Pakistan 33.1 - 11 5 Malaysia 29.7 - 18 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