MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  September 15, 2016 (REPORT 37)                                    

NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Low/medium heat nonfat dry milk prices are higher in the 
mostly series, as f.o.b. spot transactions adjusted the pricing 
series. NDM production is ongoing, as Class I needs continue to pull 
available milk supplies. Production is well below capacity for most 
plants. Buyers' spot interest is relaxed this week, with limited 
activity taking place. Interest in contracting is active, with sales 
reducing the availability of inventories. Resale market transactions 
are increasing for buyers needing smaller loads. The market undertone 
remains firm. High heat nonfat dry milk prices are unchanged. 
Production is steady to marginally higher as the need for high heat 
nonfat dry milk increases seasonally. Inventories are adequate for 
customer needs. 
EAST: East region low/medium nonfat dry milk prices are mixed in the 
range series as the spread widened. The mostly series saw prices 
moved slightly higher. Prices at the CME Group are fairly steady, but 
higher in some cases, prompted by global indices. Some sources report 
declines in low/medium heat NDM shipments this week. While activity 
is light to moderate, there are manufacturers who project that 
customer orders could reflect a bump in pricing, while they suggest 
current NDM inventories are "practically sold out" due to end-of-year 
and the 2017 Q1 sales volumes moving higher. Some brokers have taken 
exception to that and current prices, while prepared to wait-and-see 
through what some consider a short-lived market event. The low/medium 
NDM market undertone is unsettled as prices continue to firm. High 
heat nonfat dry milk prices are steady. Production is sporadic. 
Buyers/end users are looking for buying opportunities to fill current 
needs. Inventories are steady to building as dryer time becomes more 
devoted to high heat NDM. Wednesday at the CME Group, Grade A NDM 
closed at $0.9050, unchanged from the previous Wednesday. 

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .8400 -  .9700         MOSTLY:   .9000 - .9400               
HIGH HEAT:         .9800 - 1.0700                                                                                                                               

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