MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  February 16, 2017 (REPORT 7)                                      

NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Low/medium heat nonfat dry milk (NDM) prices moved down on 
the range and mostly price series this week. Price changes for NDM 
result from adjustments based on spot sales and pricing indices. Spot 
offers of NDM, at moderate prices, are available and some buyers are 
waiting to see if prices decrease further. Production of NDM is 
active, as milk remains readily available. Inventories of NDM are 
reportedly long. The market undertone is unsettled. High heat NDM 
prices are unchanged. High heat NDM production remains light as 
producers focus on low/medium heat NDM. Some end users are working 
through contracts and spot loads are infrequent. The market tone is 
steady to firm. Inventories vary from light to moderate. Some contacts 
suggest an uptick in demand of high heat NDM.
EAST: Prices for low/medium nonfat dry milk are steady to lower in the 
range, but lower through the mostly pricing series. Milk production 
continues to climb, increasing condensed skim volumes available for 
drying. Hence, manufacturing schedules typically scale up, mostly over 
the weekends, to clear loads for midweek intakes. As the market 
weakens with declining prices, a few producers are not taking new NDM 
orders. Large volumes are being shipped on orders taken in previous 
months, with fewer holding to transmit spot needs. Uncertainty is a 
dynamic of the current environment as some market participants are 
unclear whether the current movement represent a short-term episode or 
a long-term pricing decline. As noted, mixed signals in the 
marketplace around the GDT and CWAP, along with rapid CME declines and 
less product moving to global markets, increases the uncertainty. 
High heat nonfat dry milk prices remained unchanged. In the face of 
escalating milk supplies, high heat NDM production is still limited. 
Demand is light this week, with little to no activity.                                          

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .9100 - 1.0500      MOSTLY:   .9600 - 1.0100              
HIGH HEAT:        1.0500 - 1.1600                                                                                                                                                                                                                                                                                                  


1100CT daniel.johnson@ams.usda.gov 608.557.7006  
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