MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  September 22, 2016 (REPORT 38)                                    


NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Low/medium heat nonfat dry milk prices are unchanged to 
higher in the mostly series. F.O.B. sales of aged product pushed 
prices significantly lower at the bottom of the low/medium heat NDM 
range series. Current NDM production is unchanged from the previous 
week, as plants operate well below capacity in the Central region. 
Buyers' purchasing interest is somewhat restrained as apprehension 
exists around future pricing. Low/medium nonfat dry milk stocks are 
variable. High heat nonfat dry milk prices adjusted higher this week. 
As end user demand improves, manufacturers are looking to expand high 
heat NDM inventories for Q4 yearend contracts. Stocks are sufficient 
for near term customer needs. The market undertone is mostly steady.  
EAST: East region low/medium nonfat dry milk prices are steady to 
higher in the mostly series as the market continues to strengthen.
As pricing heads in a favorable direction for processors, buyer 
demand, in general, is slow to emerge for volume purchases at the 
higher price points. Seasonal production rates are mostly steady, 
however, several sources pointed out dryers in the region being down 
this week. Low/medium inventories remain adequate and continue to 
build for a few manufacturers. As prices firm, the market undertone 
remains unsettled. High heat NDM prices are higher in the range. 
Production schedules are intermittent. Manufacturers are priming for 
typical seasonal demand as sellers note orders from bakery accounts 
are increasing. High heat NDM supplies used for spot market trading 
are scarce, as inventories remain tight. The market notes a 
willingness in some manufacturers to supply their cash markets needs, 
but with a notably high premium attached. Wednesday at the CME Group, 
Grade A NDM closed at $0.9225, up $0.0175 from the previous week.

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .7800 -  .9800         MOSTLY:   .9000 - .9600               
HIGH HEAT:        1.0000 - 1.0800                                               

1100CT Daniel.Johnson@ams.usda.gov (608)557.7006
USDA/AMS/Dairy Market News, Madison, Wisconsin 
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