MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  December 15, 2016 (REPORT 50)                                     

NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Low/medium heat nonfat dry milk prices are steady to higher 
in the range and higher through the mostly series. This week, spot 
markets saw a noticeable spurge in trades. However, most NDM movement 
continues to occur primarily on a contractual basis. New NDM 
production trades at a premium in some cases. Overall, regional 
production is steady. For some buyers, NDM interest is somewhat 
reserved due to yearend considerations. A few instances existed where 
low/medium heat NDM suppliers discounted the price of Q1/Q2 product 
well below the range to clear inventory. The market undertone is 
firm. Prices for high heat nonfat dry milk are steady to higher. High 
heat NDM demand picked up as bakeries continue to prepare for 
upcoming holiday consumption. 
EAST: Prices for low/medium heat nonfat dry milk increased in the 
mostly series on f.o.b. spot sales. Nonfat dry milk production is 
steady to slightly lower due to stagnant milk output in areas of the 
region and good Class I sales. Most Eastern low/medium heat NDM 
inventories are closely balanced. Demand is fair as buyers/sellers 
look to clear some existing inventory before the end of year. The 
high heat nonfat dry milk price adjusted higher at the top of the 
range. Some producers are running active production schedules to fill 
current orders in a timely fashion. Wednesday at the CME Group, Grade 
A NDM closed at $0.9975, up $0.04 from last Wednesday's close.  
                                                                                
F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .9500 - 1.0200         MOSTLY:   .9700 - 1.0000              
HIGH HEAT:        1.0625 - 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