MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  November 17, 2016 (REPORT 46)                                     


NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Nonfat dry milk prices in the Central region are higher in 
the mostly series. Some market participants speculate prices will 
continue to move up between now and Q1 2016. Low/medium heat nonfat 
dry milk production is steady at rates below full capacity. However, 
over the holiday week, dryer schedules are expected to be close to 
full. Manufacturers' low/medium heat nonfat dry milk inventories are 
moderate to heavy. Interest is seasonally active and improving. The 
market undertone is unsettled. High heat nonfat dry milk prices are 
unchanged.  Most sales are contract based. Production is intermittent. 
Stocks are light. Wednesday at the CME Group, Grade A NDM closed at 
$0.8975, up $0.0250 from last week.
EAST: Prices for low/medium heat nonfat dry milk (NDM) in the East 
are mixed. Manufacturers' spot transactions continue to reflect 
higher prices than CME transactions. Meanwhile, buyers/sellers 
realize a higher cost to replace inventory with current product. 
Low/medium heat NDM production is ongoing, with output expected to 
pick up next week. Stocks vary, ranging from plentiful to moderate. 
Contracts are still being established for 2017 long term needs. 
Market participants are interested in what, if any, impact occurs in 
the domestic market from the New Zealand earthquake. NDM volumes 
moving to export markets are fair. The market undertone is mixed. 
High heat nonfat dry milk prices are steady. Production is determined 
based on customer commitments. Supplies remain tight. 

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .8725 -  .9800        MOSTLY:   .8775 - .9500               
HIGH HEAT:        1.0100 - 1.0900                                               

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