MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  October 13, 2016 (REPORT 41)                                      


NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Prices for low/medium nonfat (NDM) dry milk saw declines in 
the mostly series. As the CME Group's NDM prices trend lower, the 
market is generating some additional buyer interest. Overall, sales 
are fairly sluggish with light trading as some users are holding off 
on holiday orders, waiting for a clearer market picture. Regionally, 
low/medium heat (NDM) production is steady depending on the plant, 
with production minimal in some facilities due to higher returns in 
other markets. Nonetheless, stocks are building nominally, but 
comfortable for manufacturers in the region. Some reselling was 
noted, as a few brokers exchanged aged inventoried product. The 
market undertone is unsettled. F.O.B. spot prices for high heat NDM 
are steady to lower. Most sales are based on contracts. Production is 
slightly higher. Inventories are mixed. The market tone is steady to 
lower.
EAST: Eastern low/medium nonfat dry milk (NDM) prices adjusted lower 
at the bottom of the mostly series in response to weekly f.o.b. spot 
market trading. Low/medium heat nonfat dry milk (NDM) production is 
steady as some plants maintain 5-6 day production runs. Sources note, 
NDM spot interest is improving as processors' offerings of low/medium 
NDM increase, accompanied with lowered pricing. Buyers, however, are 
responding to offers with temperate demand, as some see a weakening 
NDM market. Supplies of low/medium NDM are adequate for near term 
contractual obligations. High heat NDM prices shifted fractionally 
lower at the bottom of the range. Processors have flexibility for 
scheduled runs as production picks up in the region. Stocks are 
light, but meet the needs of regular customer accounts. Wednesday at 
the CME Group, Grade A NDM closed at $0.8700, down $0.0600 from last 
week. 

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .8700 - 1.0200         MOSTLY:   .9100 - .9500               
HIGH HEAT:        1.0450 - 1.1000                                               

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