MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  May 18, 2017 (REPORT 20)                                          

NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Central low/medium heat nonfat dry milk (NDM) prices increased on 
both ends of the price range and mostly price series. Some Central contacts 
are concerned about the recent firmness of low/medium heat NDM prices with 
the availability of supplies and continually active production. 
Nevertheless, the market continues to exhibit strength. Domestic demand is 
fair, and strengthening. The low/medium heat NDM market tone is mixed. Some 
contacts expect firmness to continue, while others are more bearish about 
the near term price trends. High heat NDM prices went unchanged. Spot market 
trading of high heat NDM was light. High heat NDM production and inventories 
continue to meet contractual needs. 
EAST: Prices for low/medium heat nonfat dry milk (NDM) in the East shifted 
upwards on both ends of the range and mostly price series this week. With 
milk readily available in the region, low/medium heat NDM production is 
strong as dryers are full and operating at steady levels. Supplies are 
manageable to growing and are able to handle future needs and requests. On 
the other hand, some manufacturers are fully committed with contracts and do 
not have any excess low/medium heat NDM to sell. There are also 
manufacturers who have supply, but are holding off on selling to see where 
the price will go. Interest is blended. With the abundant supply of 
low/medium heat NDM, some traders see a weak market. However, some market 
participants report strong interest and that prices are firming. Increased 
export opportunities are also a potential factor in the higher price for 
international skim milk powder. The market tone is mixed. High heat NDM 
prices are unchanged this week, as spot sales continue to be light. 
Production is steady and dryers are running when needed, but the focus is on 
low/medium heat NDM production. The interest for high heat NDM is unchanged. 
Wednesday's CME Group cash trading for Grade A nonfat dry milk closed at 
$0.8975, up $0.0400 from last Wednesday. 

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .8300 - .9250          MOSTLY:   .8600 - .8900               
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-
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