MD_DA650 DA MD DA650 Nonfat Dry Milk - Central and East MADISON, WI. April 06, 2017 (REPORT 14) NONFAT DRY MILK - CENTRAL AND EAST CENTRAL: Low/medium heat nonfat dry milk (NDM) prices were steady in the mostly price series, but saw a slight decrease at the top of the range. Price changes for low/medium heat NDM resulted from adjustments based on spot sales and pricing indices. Spot trades were similar in frequency to previous weeks. However, many end users report an increase in the amount of spot offers being made than in previous weeks, as suppliers are trying to clear aging inventories. Buyers and end users report that they are currently comfortable regarding their internal stocks of low/medium heat NDM, and are awaiting more favorable prices. Low/medium heat NDM inventories are long. The low/medium heat NDM market undertone is uncertain. High heat NDM prices decreased on the bottom of the range, while remaining steady at the top. Spot market activity saw a slight increase over previous weeks. High heat NDM production was light, while inventories are tight to adequate. The NASS Dairy Products report noted U.S. human NDM production during February 2017 in the Central region totaled 27.8 million pounds, 16.5 percent higher than one year ago. Total U.S. human NDM production during February 2017 was 140.0 million pounds, 0.01 percent lower than last year. Total U.S. NDM, human, month ending stocks for January were 259.8 million pounds, 19.9 percent above a year ago. During January through February 2017, U.S. human NDM production totaled 293.4 million pounds, 5.8 percent more than the same time span in 2016. The DMN monthly average of the mostly price series for Central and East low/medium heat NDM during March was $0.8570, compared to $0.7778 a year ago. The March monthly average of the range price series for Central and East high heat was $1.0614 compared to $0.9724 a year ago. EAST: Low/medium heat nonfat dry milk (NDM) prices are steady to lower in the range due to f.o.b. spot trading and pricing indices. Trading occurred primarily within the boundaries of the unchanged mostly price series. Milk remains plentiful for low/medium heat NDM production, although excess milk is being diverted to Class III facilities. Dryers' schedules are moderate to heavy. As inventories build, buyers are hesitant with purchasing, evident by limited exchanges, and resolved that prices will be pressured even lower. As may be expected, competition with NDM powder in other regions limits outside sales. The undertone of the NDM market continues to weaken. Exports interest is fair. High heat prices are steady to lower. Limited amounts are being processed, especially at plants running near capacity. Wednesday's CME Group cash trading for Grade A nonfat dry milk closed at $0.8000, down $0.0075 from last Wednesday. The March 2017 monthly average price, at the CME Group, for NDM is $0.8080 compared to $0.7413 the previous year. The DMN monthly average of the range price series for Central and East low/medium heat NDM during March 2017 was $0.8838, compared to $0.7778 a year ago. DAIRY PRODUCTS: According to NASS, U.S. production of human food nonfat dry milk in the Atlantic region totaled 27.2 million pounds, 0.7% less than a year ago and 6.2% below the previous month. The February 2017 U.S. production of skim milk powder totaled 40.0 million pounds, 0.4% less than a year ago and 27.6% less than last month. F.O.B. CENTRAL/EAST: Includes EXTRA GRADE and GRADE A LOW/MEDIUM HEAT: .7800 - .9500 MOSTLY: .8000 - .8600 HIGH HEAT: .8950 - 1.1000 The Foreign Agricultural Service (FAS), reports that February 2017 U.S. NDM exports totaled 114.6 million pounds, a 26% increase from a year ago. U.S. NDM Exports, H.S. Code 0402100000(FAS) 2017 Exports % Change From (Million Lb.) 1 Year Ago February Total 114.6 + 26 TOTAL, JAN - FEB 219.9 + 18 1 Mexico 98.2 + 14 2 Philippines 26.9 - 16 3 Indonesia 18.0 + 47 4 Vietnam 12.2 + 59 5 China 11.8 + 97 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- home