MD_DA650 DA MD DA650 Nonfat Dry Milk - Central and East MADISON, WI. May 11, 2017 (REPORT 19) NONFAT DRY MILK - CENTRAL AND EAST CENTRAL: Central low/medium heat nonfat dry milk (NDM) prices remained steady this week. Spot market activity slowed after a busy previous week. Production of low/medium heat NDM is steady, as low/medium heat NDM is the primary focus of many manufacturers over other powders. Some Midwestern end users continue to wait out lower prices. However, other Central contacts report that export interest is up, and Southeast Asian buyers are finding current prices favorable in relation to other global competitors. Inventory reports of low/medium heat NDM vary from completely committed in the near term to readily available. The low/medium heat NDM market tone is mixed. High heat NDM prices slightly decreased on the bottom of the price range. Spot market trading was light. High heat NDM production is steady, and primarily based on contractual needs. The NASS Dairy Products report noted U.S. human NDM production during March 2017 in the Central region totaled 33.2 million pounds, 7.3 percent higher than one year ago. Total U.S. human NDM production during March 2017 was 159.7 million pounds, 7.2 percent lower than last year. During January-March 2017, U.S. human NDM production totaled 454.5 million pounds, 0.4 percent more than the same time span in 2016. Total U.S. NDM, human, month ending stocks for March were 247.0 million pounds, 6.4 percent above a year ago. EAST: Low/medium heat nonfat dry milk (NDM) prices in the East are unchanged in the price series this week. Production is operating at high levels, as dryers run strong every day. With heavy output, low/medium heat NDM inventories are building and are adequate for near term contracts. Interest is mixed. Some buyers think low/medium heat NDM is weakening, so they are waiting to see if the prices will go down. Also, market participants communicate there is a lot of interest, and they are regularly receiving requests. A few buyers are already looking for low/medium heat NDM for Q3 and Q4 contracts. The market tone is unchanged. High heat NDM prices shifted downward on the lower end of the range this week. Spot loads have been quiet to light. Production is unchanged as dryers are focused on low/medium heat production. Contractual needs are being fulfilled, and the demand for high heat NDM is at seasonal levels. Wednesday's CME Group cash trading for Grade A nonfat dry milk closed at $0.8575, up $0.0050 from last Wednesday. DAIRY PRODUCTS: According to NASS, U.S. production of human food nonfat dry milk in the Atlantic region totaled 32.7 million pounds, 0.6% less than a year ago, but 17.2% above the previous month. The March 2017 U.S. production of skim milk powder totaled 52.7 million pounds, 30.0% more than a year ago and 31.8% more than last month. Cumulative 2017 U.S. year to date skim milk powder production through March totals 148.0 million pounds, a 12.2% increase from 2016. U.S. NDM Exports, H.S. Code 0402100000(FAS) 2017 Exports % Change From (Million Lb.) 1 Year Ago March Total 106.7 + 18 TOTAL, JAN - MAR 326.6 + 18 1 Mexico 148.1 + 17 2 Philippines 32.3 - 26 3 China 22.4 + 172 4 Indonesia 19.0 + 24 5 Malaysia 16.8 + 83 F.O.B. CENTRAL/EAST: Includes EXTRA GRADE and GRADE A LOW/MEDIUM HEAT: .8000 - .9000 MOSTLY: .8500 - .8800 HIGH HEAT: .9400 - 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