MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  March 23, 2017 (REPORT 12)                                        

NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Low/medium heat nonfat dry milk (NDM) prices decreased on both the 
range and the mostly price series. Price changes for low/medium heat NDM 
resulted from adjustments based on spot sales and pricing indices. Some larger 
volume low/medium heat NDM trades took place, but smaller volume low/medium 
heat NDM spot market activity was limited. Some end users report being supplied 
until later in the spring and into the summer. Manufacturers, meanwhile, are 
attempting to clear inventories from 2016. Contacts agree that a contributing 
factor to the downward pressure of low/medium heat NDM is the surplus milk 
volumes in the Central region. The low/medium heat NDM market undertone remains 
uncertain. High heat NDM prices saw decreases on both the bottom and top of the 
range. Spot market activity was quiet. High heat NDM production is light, as 
producers consider inventories adequate for contractual obligations.  
EAST: Prices for low/medium heat nonfat dry milk declined throughout the 
range and the mostly series. Meanwhile, market sources indicate a modest 
pickup in trading this week. As inventories grow, suppliers are looking to 
keep NDM moving. Active offers from brokers are being passed around, as 
producers' offerings hold at the high end of the range. NDM clearing into 
Mexico and Canada are steady out of some plants. Those streams could very 
well help support the realignment of the domestic market. The NDM market 
undertone for low/medium heat remains weak. Some manufacturers increased 
their high heat nonfat dry milk production this week. Inventories are 
adequate for contractual customer orders, with limited availability for cash 
markets. Prices for high heat nonfat dry milk moved lower, a reflection of 
low/medium heat NDM price movement. Wednesday's CME Group's cash trading for 
Grade A nonfat dry milk closed at $0.8225, up $0.0175 from Tuesday, and up 
$0.0275 from last Wednesday. 

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .7900 -  .9600          MOSTLY:   .8000 - .8600               
HIGH HEAT:         .9550 - 1.1000

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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