MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  October 27, 2016 (REPORT 43)                                      


NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Prices for low/medium nonfat dry milk (NDM) are lower 
through the mostly series, in an unsettled market. Aside from price 
fluctuations, the market is seeing a significant difference in the 
trade prices of low/medium heat NDM. Some buyers/sellers point to the 
varying age of product currently moving in the market as the basis of 
those differences. Buyer interest is mostly light to moderate, as 
reluctance is displayed in making block purchases and contentment 
with acquiring individual loads. NDM production is expected to rally 
in the near term, but for now, seasonal Class pulls weigh on milk 
supplies. Prices for high heat NDM are mixed. High heat stocks are 
tight. However, product is adequate for near term commitments. 
EAST: Low/medium nonfat dry milk (NDM) prices saw marginal declines 
due to f.o.b. spot purchases. Overall, the regions? production rates 
are steady to lower. Both maintenance programs and limited condensed 
skim availability push against output rates. Spot load availability 
is scarce in balancing with little to no drying occurring at some NDM 
facilities. Following pressure from low/medium NDM markets, high heat 
nonfat dry milk prices moved lower at the bottom of the range, but 
moved higher at the top as some buyers seek product from specific 
manufacturers. Most inventories are low on product. Buyers? 
purchases, based on baking interest, are light to moderate. The 
market undertone is mixed. Wednesday at the CME Group, Grade A NDM 
closed at $0.8650, down $0.0175 from last week. 

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .8650 - .9925          MOSTLY:   .8775 - .9400               
HIGH HEAT:        1.0250 - 1.1500                                               

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