MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  October 20, 2016 (REPORT 42)                                      


NONFAT DRY MILK - CENTRAL AND EAST                                                                                                                             

CENTRAL: Low/medium nonfat dry milk (NDM) prices are steady to lower 
in the mostly series, but mixed in the range. The market undertone is 
unsettled as market trends tend to change frequently. Seasonal demand 
from Class I and II slows NDM production at most condensed skim dryer 
operations. Inventories of low/medium heat NDM are steady. End user 
interest is sluggish for purchases according to market participants. 
Some buyers are waiting for a shift to higher production situations 
in the next few weeks that could potentially lower NDM market value.
High heat NDM prices are unchanged. Output is steady, but sources 
suggest some manufacturers are preparing to increased scheduled runs 
as yearend interest develops. Inventories are tight. The market 
undertone is steady.
EAST: Low/medium nonfat dry milk saw limited f.o.b. spot purchases 
shrink the spread in the range series, as prices inched higher at the 
bottom, but dipped lower at the top of the range. Drying schedules in 
the East appear mixed, as some NDM manufacturers complete dryer 
maintenance activities. Low/medium NDM supplies vary, as near-term 
demand transforms some East manufacturers' inventories to sold out 
status. Prices for high heat nonfat dry milk are steady. A few 
manufacturers have drying space for improved production. Supplies are 
clearing to existing customers, with limited spot activity. Wednesday 
at the CME Group, Grade A NDM closed at $0.8825, up $0.0125 from last 
week. The recent release of the Announcement of Advanced Prices notes 
the November Class II nonfat solids price as $.8300 (per pound), up 
$.0367 from the October report.

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .8725 - 1.0000         MOSTLY:   .9000 - .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