MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  February 23, 2017 (REPORT 8)                                      

NONFAT DRY MILK - CENTRAL AND EAST                                              

CENTRAL: Low/medium heat nonfat dry milk (NDM) f.o.b. spot prices are 
lower on the range and the mostly series. Price changes for NDM 
result from adjustments based on spot sales and pricing indices. NDM 
spot offers are available, but some end users report being content 
with current supplies. With available milk, production of NDM 
continues at active levels. Demand is not matching increased 
inventories, and questions remain about export and trade deals. 
Contacts continue to report that NDM inventories are more than 
sufficient. The NDM market tone is unsteady. High heat NDM prices are 
unchanged. Production of high heat NDM continues at limited levels. 
End users report working through contracts, and spot market interest 
is sporadic. The market tone is steady. Inventories are light, but 
are adequate to cover contract needs.
EAST: F.O.B. spot prices for eastern low/medium heat nonfat dry milk 
(NDM) shifted down in the range as well as in the mostly pricing 
series. The market undertone is unsettled. Spot trading is light as 
most sales are driven by contract requirements. Some buyers/end users 
remain quiet, studying the market. Meanwhile, other NDM customers 
continue putting pressure on the spot market in order to get lower 
prices. There are plenty of offer from manufacturers. Condensed skim 
volumes, prompted by robust regional farm production, are more than 
adequate for NDM processing. As a result, NDM inventories are steady 
to building. High heat nonfat dry milk prices are steady on very 
light trading. High heat NDM production is sporadic as most 
processors are focusing on low/medium heat NDM production. 
Inventories are tight in the spot market, but are sufficient to cover 
contractual needs.

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .8500 - 1.0300         MOSTLY:   .9350 - .9900               
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