MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  February 09, 2017 (REPORT 6)                                      

NONFAT DRY MILK - CENTRAL AND EAST 
                                             
CENTRAL: Low/medium heat nonfat dry milk (NDM) prices moved lower in 
both the range and mostly price series this week. Price changes for 
NDM result from adjustments based on spot sales and pricing indices. 
NDM demand is reportedly tepid, as end users are working through 
contracts and are able to be selective with spot market options. 
Production of NDM remains active as condensed skim supplies are 
abundant. Some end users have reported that they are awaiting more 
accommodating price points, but will selectively purchase NDM if the 
price is right. NDM inventories are adequate and building. Contacts 
report the market is seeing a near term stabilization. High heat NDM 
prices moved lower in the bottom of the range. Production of high 
heat NDM continues to be light, as end users work through contracts. 
The market tone is steady. Inventories vary from light to moderate 
across the region.                                                                                 
EAST: In the East, low/medium nonfat dry milk (NDM) f.o.b. prices 
shifted lower on the range and mostly series, following downward 
trends on various indices. Spot sales activity has been light 
throughout the week as some buyers/end users are quietly analyzing 
the current market conditions. At this point, the market tone is 
unsettled. Low/medium heat NDM production is active as large 
condensed skim intakes are clearing into dryers in many balancing 
plants across the region. Inventories are steady to building. High 
heat NDM prices are mixed on light trading. A few spot transactions 
shifted down the bottom of the price range. High heat production is 
irregular, mostly based on contractual needs. Inventories vary from 
plant to plant. The Atlantic region's December 2016 production of 
nonfat dry milk totaled 29.4 million pounds, 3.3% less than a year 
ago, but 11.6% above last month. The December 2016 U.S. production of 
skim milk powder totaled 51.6 million pounds, 18.7% more than a year 
ago and 3.0% than last month. Cumulative 2016 U.S. year to date skim 
milk powder production through December totals 558.3 million pounds, 
a 25.1% increase from 2015.
DAIRY PRODUCTS:  According to NASS, U.S. production of human food 
nonfat dry milk during December 2016 totaled 156.0 million pounds, 
3.2% higher than a year ago and 21.8% higher than the previous month. 
Month ending stocks, at 228.4 million pounds are 11.8% higher than a 
year ago. Cumulative 2016 U.S. year to date nonfat dry milk 
production through December totaled 1.750 billion pounds, 4.0% less 
than 2015 during the same time span. 
                                                                                
F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .9450 - 1.0500         MOSTLY:  1.0000 - 1.0300              
HIGH HEAT:        1.0500 - 1.1600                                               



1100CT Angel.Teran@ams.usda.gov 608.422.8593  
Israel.weber@ams.usda.gov 608.422.8601
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-home