MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  April 20, 2017 (REPORT 16)                                        

NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: CENTRAL: Low/medium heat nonfat dry milk (NDM) prices increased on 
the range and mostly price series. The frequency of spot activity increased 
from previous weeks, and contacts point to steady and firming index prices 
as a catalyst for increased prices. Some contacts also suggest increased 
export interest has bolstered the market. Production of low/medium heat NDM 
continues briskly, in order to keep up with the Central region milk supply. 
Low/medium heat NDM inventories are building. The low/medium heat NDM market 
tone is uncertain, as some contacts suggest building inventories are 
outpacing domestic and global demand. High heat NDM prices shifted higher on 
the bottom of the range. Spot market trading was light. High heat NDM 
production is steady and inventory reports are mixed, but generally adequate 
for contractual usage.  
EAST: Low/medium heat nonfat dry milk (NDM) prices strengthened as spot 
sales and pricing indices shifted markets slightly higher. The existing NDM 
market is highly price sensitive, sparked somewhat by current global market 
situations, as producers report weaker than expected demand. Reports show 
light activity in the way of new orders as manufacturers' NDM holdings 
build, with anticipation of lighter than usual sales orders for over the 
next few weeks. Comparatively, market sources note, "the crystal ball is a 
bit cloudy now", as NDM prices seek a trading level. Fixed price contracts, 
for the balance of 2017 continue, as quotes are being obtained based on 
current market information. International interest is steady. The low/medium 
NDM market undertone is unsettled. High heat NDM prices moved up at the 
bottom of the range in a fairly tight spot market. Some purchasing channels 
report inventories as sold out beyond contractual customer needs. Production 
continues to be intermittent. Market demand for high heat NDM is at typical 
seasonal levels. Wednesday's CME Group cash trading for Grade A nonfat dry 
milk closed at $0.8475, up $0.0225 from last Wednesday. 
F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .8000 -  .8900         MOSTLY:   .8300 - .8600               
HIGH HEAT:         .9250 - 1.0500                                               


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