MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  January 12, 2017 (REPORT 2)                                       


NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Low/medium heat nonfat dry milk prices are higher in the Central 
region through the range and mostly pricing series. The market undertone 
remains firm. Sources indicate a few NDM manufacturers are currently holding 
onto some of their new product in anticipation of prices moving higher based 
on international market factors. Domestic demand is good, with active export 
interest. Inventories are sufficient and building. High heat nonfat dry milk 
market prices are unchanged. Production is sporadic, as inventories remain 
tight.  
DAIRY PRODUCTS:  According to NASS, U.S. production of human food nonfat dry 
milk during November 2016 totaled 126.8 million pounds, 0.9% lower than a 
year ago and 10% below the previous month. Month ending stocks, at 215.8 
million pounds are 8.5% above a year ago. Cumulative U.S. YTD nonfat dry 
milk production through November totaled 1.6 billion pounds, 4.7% less than 
2015 during the same time span. 
EAST: East region low/medium heat nonfat dry milk prices are higher in an 
unsettled market. Manufacturers are confident in the market's momentum.  
Production is unchanged to higher. Demand is steady in both domestic and 
foreign markets. Some producers are able to secure long-term (full year) 
indexed based contracts for 2017. Sources indicate growing inventories. Some 
market participants anticipate larger NDM purchases will occur as the month 
progresses. High heat NDM prices are steady. Demand is sluggish, with few 
loads trading in the spot market. Production is based on contract buyers' 
immediate needs.  
DAIRY PRODUCTS:  According to NASS, U.S. production of human food nonfat dry 
milk in the Atlantic region totaled 24.3 million pounds, 17.5% more than a 
year ago, but 14.4% below the previous month. 

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .9500 - 1.0900         MOSTLY:  1.0000 - 1.0600              
HIGH HEAT:        1.1000 - 1.1800                                                                                                                              

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/dairyy
Dairy Market News database portal: http://www.marketnews.usda.gov/mnp/da-
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