MD_DA650 DA MD DA650 Nonfat Dry Milk - Central and East MADISON, WI. October 06, 2016 (REPORT 40) NONFAT DRY MILK - CENTRAL AND EAST CENTRAL: Prices for low/medium nonfat dry milk are unchanged in the mostly series. Production is mostly steady, with a few plants able to clear more condensed skim into low/medium NDM as Class II condensed needs decline. Current demand is somewhat sluggish, with limited buyer interest as contract sales make up the bulk of transactions. Transactions in spot markets are generally on a need-to-basis. Some NDM customers are shifting buying interests to substitute dairy products that are competitively priced. Hence, manufacturers' inventories are building incrementally. Central high heat nonfat dry milk prices are higher, as demand increases with seasonal baking interest. Production is steady to higher. Stocks are mainly light. Contracted volumes are moving on schedule. The market undertone is firm. The September 2016 Dairy Market News Central and East monthly average for the low/medium heat nonfat dry milk mostly series was $0.9212, compared to $0.8769 a year ago. High heat NDM monthly average price was $1.0312, compared to $1.0054 the previous year. The monthly average price, at the CME Group, for NDM is $0.9160, compared to $0.9045 the previous year. The NASS Dairy Products report noted U.S. human NDM production during August 2016 in the Central region totaled 22.0 million pounds, 4.4 percent higher than one year ago. Total U.S. human NDM production during August 2016 was 117.0 million pounds, 5.8 percent lower than last year. During January-August 2016, U.S. human NDM production totaled 790.8 million pounds, 23 percent more than the same time span in 2015. Total U.S. NDM, human, month ending stocks for August were 235.5 million pounds, 1.5 percent above a year ago. EAST: The market for Eastern low/medium nonfat dry milk (NDM) reports the mostly price series as steady, in a somewhat quiet market. A volume spot sale shifted prices slightly lower at the bottom of the range. Sales appear mixed. Some low/medium NDM suppliers report oversold inventories for the year. Most manufacturers are drying every day, although at lower rates in some instances due to supply availability. Domestic demand is slow to moderate. International trading is active. The market undertone is mixed. Prices for high heat nonfat dry milk (NDM) are seasonally advancing. High heat NDM production is gearing up at some facilities to meet the demands of the upcoming baking season. The market undertone is firm. The September 2016 Dairy Market News Central and East monthly average for the low/medium heat nonfat dry milk range price series is $0.9089 compared to $0.8879, compare to the previous year. Wednesday at the CME Group, Grade A NDM closed at $0.9300, down $0.0225 from last week. The Foreign Agricultural Service (FAS), reports that August 2016 U.S. nonfat dry milk exports totaled 116.0 million pounds, a 23% increase from a year ago. DAIRY PRODUCTS: According to NASS, Atlantic region production of human food nonfat dry milk for August 2016 totaled 23.9 million pounds, 0.5% less than a year ago and 20.9% below last month. The August 2016 U.S. production of skim milk powder totaled 46.1 million pounds, 17.2% more than a year ago, but 5.6% less than last month. F.O.B. CENTRAL/EAST: Includes EXTRA GRADE and GRADE A LOW/MEDIUM HEAT: .8600 - 1.0200 MOSTLY: .9200 - .9700 HIGH HEAT: 1.0500 - 1.1000 U.S. NDM Exports, H.S. Code 0402100000(FAS) 2016 Exports % Change From (Million Lb.) 1 Year Ago August Total 116.0 + 23 TOTAL, JAN - AUG 790.8 - 4 1 Mexico 345.2 + 4 2 Philippines 113.7 + 10 3 Indonesia 78.6 + 17 4 Malaysia 35.7 - 12 5 Pakistan 34.7 - 16 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