MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  January 19, 2017 (REPORT 3)                                       

NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Low/medium heat nonfat dry milk prices are higher in the Central 
region, lower at the top of the range, but higher through the mostly pricing 
series. In general, NDM prices are holding above the dollar mark, which 
indicates strong demand, especially from volume buyers. However, market 
sources note a few buyers are balking at producers' offerings, while loads 
with some age can be found and reflects the bottom of the range. Spot buyers 
are very price conscious. Manufacturing supplies range from balanced to 
building. Central's high heat nonfat dry milk production is intermittent. 
Prices are unchanged to higher. Supplies are sufficient for near-term 
customer needs. 
EAST: Prices for low/medium heat nonfat dry milk (NDM) rose higher in the 
mostly series, as the f.o.b. spot market strengthened. Customers are seeking 
to lock in volumes over long timeframes. As well, there is a willingness of 
some to pay more if purchases are new production. Currently, low/medium heat 
NDM production is active, with manufacturers noting higher output rates. As 
domestic demand improved this week, some international customers are holding 
off NDM orders until after the presidential inauguration. Producers' stocks   
are adequate and building. A few producers in the region have contracted the 
bulk of inventory on hand. Because plant milk receipts were off slightly,    
this week some manufacturers scheduled high heat nonfat dry milk production 
runs. Demand is steady at seasonal levels. This week, the market undertone 
is steady to firm. Inventories remain tight. 

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .9650 - 1.0800         MOSTLY:  1.0300 - 1.0700              
HIGH HEAT:        1.1300 - 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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