MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  March 02, 2017 (REPORT 9)                                         

NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Low/medium heat nonfat dry milk (NDM) prices dropped on both the 
range and mostly price series this week. Price changes for NDM result from 
adjustments based on spot sales and pricing indices. Spot trade reports 
picked up a bit from last week. Production of low/medium heat NDM continues 
to be active, corresponding to milk supplies. Domestic demand is relatively 
steady, but not on par with building NDM inventories. The NDM market tone is 
uncertain. High heat NDM prices are unchanged from last week. High heat NDM 
production is limited with producers focusing on low/medium heat NDM. End 
users continue to work through contracts, and spot market reports are 
infrequent. The market tone is steady. Inventories are adequate.
EAST: Prices for low/medium nonfat dry milk (NDM) moved lower in response to 
regional f.o.b. spot transactions. International market uncertainty is 
adding to the downward pressure. Production remains strong. Plants with 
limited capacity to dry are shopping loads of condensed skim. Trade contacts 
indicate that lower priced powder, having a little age, is still in the 
marketplace. Hence, at initial glance, low/medium heat NDM offerings appear 
in excess of current demand. In general, buyers/sellers are currently more 
price sensitive. As noted by one market observer, a buyers' market appears 
to be developing. The NDM undertone suggests a weak market. Index pricing 
shifted high heat NDM prices higher at the bottom of the range, while prices 
are lower at the top of the range. Demand is not aggressive, spot offerings 
remain minimal, and inventories are mostly tight. High heat NDM production 
is hampered by surplus milk availability at dryer operations. The market 
undertone is unsettled.

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .7925 - 1.0000         MOSTLY:   .8500 - .9400               
HIGH HEAT:        1.0625 - 1.1500                                               

1100CT daniel.johnson@ams.usda.gov 608.422.8605 
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-
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