MD_DA650 DA MD DA650 Nonfat Dry Milk - Central and East MADISON, WI. November 10, 2016 (REPORT 45)**UPDATED NONFAT DRY MILK - CENTRAL AND EAST CENTRAL: Prices in the region's low/medium heat nonfat dry milk (NDM) markets changed lower at the bottom of the mostly series, but remain steady at the top. Some buyers/sellers report limited developments in new interest, in a somewhat quiet week. Market uncertainty pressures some manufacturers looking to move aging inventory, in anticipation of increased drying activity arising as fluid demand relaxes before the holiday. Intake component levels are trending higher, allowing some increases in NDM yields. The low/medium NDM market undertone remains unsettled. High heat nonfat dry milk prices move slightly lower at the bottom of the range. Interest beyond contract needs is sluggish. The CME Group's monthly average price for Grade A NDM during October 2016 was $0.8852, compared to $0.9333 a year ago. The DMN monthly average of the mostly price series for Central and East low/medium heat NDM during October 2016 was $0.9262 compared to $0.9790 a year ago. The October monthly average of the range price series for Central and East high heat was $1.0760 compared to $1.1235 a year ago. **The NASS Dairy Products report noted U.S. human NDM production during September 2016 in the Central region totaled 24.8 million pounds, 29.6 percent higher than one year ago. Total U.S. human NDM production during September 2016 was 125.6 million pounds, 4.7 percent higher than last year. EAST: The low/medium heat f.o.b. nonfat dry milk price in the range series is higher, but steady to lower in the mostly series. Market participants perceive that mixed signals allude to some temporary market instability, resulting in noted price fluctuations. Production is steady, as most NDM processing operations report no significant changes in milk supply intakes. Condensed skim contracts weigh on NDM production rates at some plants, as manufacturers stocks range light to moderate. The market undertone is unsettled. High heat nonfat dry milk prices are unchanged to lower. Production is dependent upon customer needs. The market undertone is steady. Wednesday at the CME Group, Grade A NDM closed at $0.8725, down $0.0175 from last week. The October 2016 Dairy Market News monthly average for Central and East low/medium heat nonfat dry milk range price series is $0.9361 compared to $1.0004 a year ago. The Foreign Agricultural Service (FAS), reports that September 2016 U.S. nonfat dry milk exports totaled 110.3 million pounds, up 6% from a year ago. F.O.B. CENTRAL/EAST: Includes EXTRA GRADE and GRADE A LOW/MEDIUM HEAT: .8600 - .9825 MOSTLY: .8700 - .9400 HIGH HEAT: 1.0100 - 1.0900 U.S. NDM Exports, H.S. Code 0402100000(FAS) 2016 Exports % Change From (Million Lb.) 1 Year Ago September Total 110.3 + 6 TOTAL, JAN - SEP 901.0 - 3 1 Mexico 393.4 -- 2 Philippines 129.4 + 14 3 Indonesia 88.9 + 25 4 Malaysia 42.3 - 3 5 Pakistan 38.2 - 18 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