MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  September 29, 2016 (REPORT 39)                                    

NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Market f.o.b. pricing for low/medium nonfat dry milk (NDM) 
is higher. Overall, production is mixed. Extra loads of condensed 
skim were available, as supplies offered out of the East cleared into 
Central region NDM plants. Inventories are in good position and    
manufacturers are comfortable as NDM stocks appear to be in balance. 
However, end users are not excited about current prices and express 
an unwillingness to chase what they consider too high pricing. Some 
buyers/sellers see prices easing, as inventories grow and processors' 
reluctance to carry too much low/medium NDM inventory develops. Aged 
NDM is filtering the market, although some traders note, the market 
is less willing to take product without generous discounts. High heat 
nonfat dry milk prices are climbing. Loads typically are available 
for committed orders, with lesser supplies for spot trading. High 
heat NDM undertone characterizes a firm market.  
EAST: Regionally, low/medium nonfat dry milk prices continues to 
display strength. Meanwhile, production is slightly limited as some 
manufacturing plants' dryer operations remain down. F.O.B. spot 
trading has been very light in the East. The majority of transactions 
resulted from negotiated fixed and/or basing prices. As the market 
looks for signs that best determines the market, a central concern 
for NDM manufacturers is taking advantage of what some phrase, bull 
market conditions, as prices consistently trend in a favorable 
direction. However, the sources indicate the associated demand is 
slow in materializing. Even so, the NDM market undertone is firm. 
Prices for high heat NDM continue to move northward. Buyers are 
cautiously declining manufacturers' premium high heat NDM offerings. 
Supplies remain tight, as some processors implement active production 
schedules. Demand is improving in a firming market. Wednesday at the 
CME Group, Grade A NDM closed at $0.9525, up $0.0300 from last week.

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .8850 - 1.0200         MOSTLY:   .9200 - .9700               
HIGH HEAT:        1.0200 - 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