MD_DA650 DA MD DA650 Nonfat Dry Milk - Central and East MADISON, WI. June 08, 2017 (REPORT 23) NONFAT DRY MILK - CENTRAL AND EAST CENTRAL: Central low/medium heat nonfat dry milk (NDM) prices edged up on both ends of the price range and bottom of the mostly price series. The low/medium heat NDM spot market was steady, but has slowed somewhat from a busy May. Low/medium heat NDM inventories are available, and this leads some contacts to question the continued firmness of low/medium heat NDM prices. The low/medium heat NDM market tone is mixed. High heat NDM prices increased on the bottom of the range. Spot market trading of high heat NDM was quiet. High heat NDM production is primarily limited to contractual needs, and inventories are reportedly tight. The CME Group monthly average price for Grade A NDM during May was $0.8888, compared to $0.7880 a year ago. The DMN monthly average of the mostly price series for Central and East low/medium heat NDM during May was $0.8770, compared to $0.7801 a year ago. The May monthly average of the range price series for Central and East high heat was $1.0098 compared to $0.9276 a year ago. The NASS Dairy Products report noted U.S. human NDM production during April 2017 in the Central region totaled 32.0 million pounds, 5.1 percent higher than one year ago. Total U.S. human NDM production during April 2017 was 170.9 million pounds, no change from April 2016. During January-April 2017, U.S. human NDM production totaled 625.4 million pounds, 0.3 percent more than the same time span in 2016. EAST: Low/medium heat nonfat dry milk moved higher on both ends of the range, and shifted higher on the bottom of the mostly price series this week. Prices are stable and showing signs of strength. With abundant milk volumes, low/medium heat NDM production is active and running at high levels. Stocks are controllable to lengthy, overall, adequate to take on customer's needs. The demand is mixed as a number of market participants are in high demand for low/medium heat NDM. On the other hand, with the vast amount of milk, and high inventories, a handful of participants do not see a reason for the high price, and are waiting to see where low/medium heat NDM will go. The market undertone is steady, with mixed signals. Prices for High heat NDM remained steady this week. Production is limited, as drying low/medium heat NDM continues to be on the main agenda. Inventories are adequate to limited. The market tone is firming. Wednesday's CME Group cash trading for Grade A nonfat dry milk closed at $0.9025, down $0.0525 from last Wednesday. The DMN monthly average of the range price series for Central and East low/medium heat NDM during May 2017 was $0.8750, compared to $0.7828 a year ago. The Foreign Agricultural Service (FAS), reports that April 2017 U.S. nonfat dry milk exports totaled 122.5 million pounds, a 20% increase from a year ago. U.S. NDM Exports, H.S. Code 0402100000(FAS) 2017 Exports % Change From (Million Lb.) 1 Year Ago April Total 122.5 + 20 TOTAL, JAN - APR 449.0 + 19 1 Mexico 201.3 + 16 2 Philippines 49.3 - 22 3 China 31.3 + 167 4 Indonesia 24.5 + 3 5 Malaysia 24.1 + 65 F.O.B. CENTRAL/EAST: Includes EXTRA GRADE and GRADE A LOW/MEDIUM HEAT: .8800 - 1.0000 MOSTLY: .9000 - .9300 HIGH HEAT: 1.0100 - 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- home