MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  March 30, 2017 (REPORT 13)                                        

NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Low/medium heat nonfat dry milk (NDM) prices were mostly steady 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. 
Spot market activity for low/medium heat NDM was active, and some large 
volume spot exchanges were reported again this week. Some end users are 
contentedly stocked, and plan on waiting for a softening price before 
committing to purchases. However, some Central region contacts expect a near 
term firmness of low medium heat NDM with increased interest from 
international markets. Low/medium heat NDM inventories are adequate for both 
contractual obligations and some spot trading. The low/medium heat NDM 
market undertone is uncertain. High heat NDM prices decreased on the bottom 
of the range. Spot market activity was light. High heat NDM production is 
also light, but adequate to meet current demand.
EAST: This week, low/medium heat NDM spot trading in the East led to a price  
shift at the bottom of the range. However, prices are steady in the mostly 
series. Not many NDM exchanges are taking place, in retrospect to available 
supplies. At this point, buyers are mainly brokers looking for bargain 
prices, as most wait for market make-up to pressure prices even lower. A 
major concern for producers involves the securement of hedging positions 
where necessary. As such, some manufacturing sources indicate that market 
improvements may be unlikely through next month, which provides a temporary 
bleak domestic NDM picture, particularly following last week's very brief 
rally. The low/medium heat NDM market undertone is steady to weak. The high 
heat NDM price parallels low heat, with steady to lower movement. With 
sporadic production, inventories are adequate to tight. Transactions through 
contracted arrangements limit high heat NDM in the spot market. Wednesday's 
CME Group cash trading for Grade A nonfat dry milk closed at $0.8075, down 
$0.0150 from last Wednesday. 

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .7800 -  .9600         MOSTLY:   .8000 - .8600               
HIGH HEAT:         .9300 - 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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