MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  December 29, 2016 (REPORT 52)                                     

NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: This week, low/medium heat nonfat dry milk (NDM) prices are 
mixed, based on f.o.b. spot transactions. Demand is fair to good with 
most buyer interest centering on new low/medium NDM production. Some 
buyers remain cautious not to take on too much product, with the 
possibility of lower priced offerings emerging. Dryers have been 
running at capacity levels but will likely ease toward the end of the 
week. As a result, heavier output and rather limited demand, in this 
short holiday week, are adding to NDM stocks. Prices for high heat 
are higher. Manufacturing schedules vary, relative to contractual 
customer needs. Demand is light.  
EAST: Cash market transactions adjusted low/medium heat nonfat dry 
milk prices steady to lower in the range, while steady to higher in 
the  mostly series. Production rates remain elevated for the regions' 
low/medium heat NDM processors. However, processing is expected to 
taper as bottlers look to extend orders for milk supplies as the end 
of the holiday period approaches. Manufacturers' NDM holdings are 
increasing, although some processors note those volumes as committed 
product. Loads are primarily clearing to customer accounts. The NDM 
market undertone is firming. High heat nonfat dry milk prices are 
also firming. Demand for high heat is at yearend levels. The CME 
Group price for Grade A NDM closed Wednesday at $1.0200, unchanged 
from the previous Wednesday's close.  
                                                                                
F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .9400 - 1.0800         MOSTLY:   .9700 - 1.0300              
HIGH HEAT:        1.0950 - 1.1700                                               


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