MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  May 04, 2017 (REPORT 18)                                          

NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Central low/medium heat nonfat dry milk (NDM) prices remained 
steady on the range, but increased on the bottom and top of the mostly price 
series. Contacts report increasing prices could represent an uptick in spot 
market activity, which has been notable compared to recent weeks. However, 
some domestic buyers/end users report being content with current stocks and 
are waiting for more advantageous prices. Production and inventories of 
low/medium heat NDM remain in line with surplus milk supplies. The 
low/medium heat NDM market tone is uncertain. High heat NDM prices increased 
on the bottom of the range. Spot market trading was light. High heat NDM 
production reports are mixed, but some contacts suggest high heat NDM 
inventories are growing. The DMN monthly average of the mostly price series 
for Central and East low/medium heat NDM during April was $0.8363, compared 
to $0.7350 a year ago. The April monthly average of the range price series 
for Central and East high heat was $0.9863 compared to $0.9355 a year ago. 
EAST: Prices for low/medium heat nonfat dry milk (NDM) in the East increased 
on both ends of the mostly price series this week, Low/medium NDM production 
is unchanged as milk supplies continue to be strong. Condensed skim is 
clearing into the dryers, which typically run close to capacity. Low/medium 
heat NDM inventories are building. The market undertone is unsettled. 
Interest appears to be picking up, with numerous buying opportunities. 
However, some buyers report having limited interest as they expect prices to 
drop. High heat NDM prices shifted upward on the lower end of the range this 
week. Spot sale trading is light. High heat production is irregular, but 
adequate to take on contractual needs. Wednesday's CME Group cash trading 
for Grade A nonfat dry milk closed at $0.8525, no change in price from last 
Wednesday. The DMN monthly average of the range price series for Central and 
East low/medium heat NDM during April 2017 was $0.8450, compared to $0.7689 
a year ago. The April 2017 monthly average price, at the CME Group, for NDM 
is $0.8347, compared to $0.7306 the previous year.
  
F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .8000 - .9000          MOSTLY:   .8500 - .8800               
HIGH HEAT:         .9450 - 1.0500                                               

1100CT Jessica.Mueller@ams.usda.gov 608.422.8589 
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