MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  May 25, 2017 (REPORT 21)                                          

NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Central low/medium heat nonfat dry milk (NDM) prices increased on 
both the range and the mostly price series. Some Central region contacts 
question the price uptick of low/medium heat NDM, as milk supplies are 
readily available, and NDM production is reportedly active. However, other 
contacts suggest recent spot prices have been low, comparative to futures 
prices, and the market is self-correcting. In any case, some domestic buyers 
and end users are showing increased interest and willingness to purchase NDM 
at higher prices, while others are planning to wait out the current upswing. 
Low/medium heat NDM inventories are comfortable. The low/medium heat NDM 
market tone is mixed. High heat NDM prices increased on both ends of the 
price range. Spot market trading of high heat NDM picked up from previous 
weeks. High heat NDM production and inventories remain adequate for 
contractual needs and the occasional spot offering. 
EAST: Low/medium heat nonfat dry milk (NDM) prices shifted higher on both 
ends of the range and mostly price series this week. With increased export 
opportunities, some market participants report seeing firmness to the 
low/medium heat NDM price. Production is active, as some manufacturers are 
drying continually. Inventories are comfortable to heavy. Some manufacturers 
are able to meet near term spot market needs. Still, some manufacturers are 
contract bound and do not have extra supply to sell. Interest remains mixed. 
Some Eastern contacts communicate interest is strengthening. However, with 
the constant drying of low/medium heat NMD, some contacts do not see the 
need for a firming price. The market tone is stable to uncertain. High heat 
NDM prices shifted higher on both sides of the price series. This week, 
there was an uptick in spot trading activity. Production is limited as 
dryers are running when available. Inventories are available for contractual 
and spot demand. The demand for high heat NDM is steady to improving. 
Wednesday's CME Group cash trading for Grade A nonfat dry milk closed at 
$0.9275, up $0.0300 from last Wednesday. 
                                                                                
F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .8550 - .9500          MOSTLY:   .8700 - .9100               
HIGH HEAT:         .9750 - 1.1000                                               

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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