DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  December 22, 2016 (REPORT 51)                                     


NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Prices for low/medium heat nonfat dry milk in the Central 
region are steady to higher in the mostly series. Current NDM output 
is slightly above previous weeks. However, manufacturers expect 
holiday milk volumes to prompt significant increases in low/medium 
NDM production as the week advances. Producers report inventories as 
either sold out or balanced. Demand for NDM is mixed as buyers/users 
reduce current supplies before the end of year. The majority of NDM 
market sources have finalized contracts for 2017. The high heat NDM 
spread tightened in the range as prices changed lower on very little 
spot sales action. However, the high heat NDM market tone is steady.   
EAST: Cash market transactions shifted low/medium heat nonfat dry 
milk prices higher at the top of both the range and mostly series. 
Production is increasing with heavier output anticipated over the 
holiday. As inventory control factors into buying decisions, market 
sources suggest some decline in sales of low/medium heat nonfat dry 
milk through the end of the year. Demand is good. High heat nonfat 
dry milk prices are lower with f.o.b. spot trades. Buying interest is 
mixed, with some additional demand noted from bakery accounts. The 
market undertone is unchanged. Wednesday at the CME Group, Grade A 
NDM closed at $1.0200, up $0.0225 from last Wednesday's close.  
                                                                                
F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .9500 - 1.0800         MOSTLY:   .9700 - 1.0200              
HIGH HEAT:        1.0600 - 1.1600                                                

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