MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  December 01, 2016 (REPORT 48)                                     

NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
                                                                                
CENTRAL: In the Central region, prices for low/medium heat nonfat dry 
milk are mixed. Buyers report an abundant supply of Q1-Q3 NDM is 
available on the secondary market. Producers are also actively 
clearing condensed skim into NDM, so current production is available, 
too. The current supply situation has removed purchasing urgency for 
some buyers to strike a deal on sizeable near-term orders. There is 
some interest for January/Q1 2017 coverage. With some uncertainty on 
what markets will do in 2017, many manufacturers aren't willing to 
commit large volumes to fixed price contracts. Low/medium heat NDM 
production is active throughout the Central region as on farm milk 
production continues improving. Balancing plant operators also report 
some push back from bottlers this week is sending additional milk 
loads into manufacturing. Inventories are building. High heat nonfat 
dry milk prices are unchanged to higher. With limited availability 
from some manufacturers, buyers are more willing to consider 
alternate brands, alternate sources and higher prices. Production is 
light to moderate as many plant operators focus on clearing intakes 
through the less time-consuming production of low/medium heat NDM. 
Inventories are light. 
EAST: Prices for eastern low/medium heat nonfat dry milk (NDM) are 
mixed on the range, but higher on the mostly series. The market 
undertone is unsettled for most industry participants. Sales in the 
f.o.b. spot market are light, as most transactions are based on 
contracts. Production is active as many processors continue clearing 
large condensed skim volumes into dryers. Inventories are steady to 
higher and are readily available in the market. High heat pricing is 
steady to higher. Drying schedules are intermittent, mainly based on 
contractual requirements. Demand from bakers is active, as the year-
end holiday gets close. Inventories are tight. Consequently, spot 
trading activity has been light throughout the week.

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .8600 - 1.0000         MOSTLY:   .9100 - .9700               
HIGH HEAT:        1.0150 - 1.1600                                               

1100CT Angel.Teran@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