MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  December 08, 2016 (REPORT 49)                                     

NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Prices for low/medium heat nonfat dry milk advanced in the 
range and mostly price series on f.o.b. spot sales. Firmer prices 
coincide with some manufacturers being oversold on low/medium NDM and 
having limited holdings to offer in the spot markets. While NDM 
production is active, at seasonal levels, manufacturers are seeing 
immediate sales for most product. Condensed skim, which typically 
moves into NDM manufacturing by way of Eastern suppliers have been 
slow to materialize. Prices for high heat nonfat dry moved higher 
through the range on good demand. The market tone is firm with few 
spot loads available and premiums paid on the loads secured. The DMN 
monthly average of the mostly price series for Central and East 
low/medium heat NDM during November 2016 was $0.9177, compared to 
$0.8724 a year ago. The November 2016 monthly average of the range 
price series for Central and East high heat was $1.0571 compared to 
$1.0925 a year ago.
DAIRY PRODUCTS:  According to NASS, U.S. production of human food 
nonfat dry milk during October 2016 totaled 139.6 million pounds, 
18.0% higher than a year ago and 11.0% above the previous month. 
Month ending stocks, at 225.4 million pounds are 25.2% higher than a 
year ago. 
EAST: Low/medium heat nonfat milk prices are firming. Prices moved 
higher in each of the pricing series with adjustments coming from a 
few f.o.b. spot trades and NDM pricing indices. Industry participants 
report domestic demand for new production is active, but availability 
from producers remains scarce, as supplies are minimal. Contracting 
for 2017 is ongoing between producers and buyers. High heat nonfat 
dry milk prices are higher. Some manufacturers have active production 
schedules this week. Supplies remain tight, while availability of 
loads from manufacturers outside of contracts are light. The November 
2016 monthly average price, at the CME Group, for NDM is $0.8914, 
compared to $0.7822 the previous year. Wednesday at the CME Group, 
Grade A NDM closed at $0.9575, even with the previous Wednesday.  
DAIRY PRODUCTS:  According to NASS, U.S. production of human food 
nonfat dry milk during October 2016, in the Atlantic region, totaled 
26.7 million pounds, 22.4% more than a year ago and 38.6% above last 
month. 

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .9050 - 1.0200         MOSTLY:   .9500 - .9750               
HIGH HEAT:        1.0400 - 1.2000                                                                                                                               
                                                                                

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