MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  July 06, 2017 (REPORT 27)                                         

NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Low/medium heat nonfat dry milk (NDM) prices in the Central U.S. 
slipped on the top of the range, but remained steady on the bottom of the 
range and mostly price series. Spot transactions have been quiet, as the 
Fourth of July holiday has slowed transactions markedly. Low/medium heat NDM 
production is ongoing, at fairly active rates. Inventories are available for 
contractual obligations and are fairly balanced according to most producers 
in the Midwestern region. The low/medium heat NDM market undertone is 
steady, with signs of softening. High heat NDM prices held steady. Spot sale 
trading of high heat NDM was light. Production and inventories of high heat 
NDM are primarily adequate for contractual needs. The CME Group monthly 
average price for Grade A NDM during June was $0.8902, compared to $0.8476 a 
year ago. The DMN monthly average of the range price series for Central and 
East low/medium heat NDM during June 2017 was $0.9267, compared to $0.8184 a 
year ago. The DMN monthly average of the mostly price series for Central and 
East low/medium heat NDM during June was $0.9123, compared to $0.8221 a year 
ago. The June monthly average of the range price series for Central and East 
high heat was $1.0490 compared to $0.9300 a year ago.
EAST: Low/medium heat nonfat dry milk (NDM) prices in the East shifted lower 
on the top of the range price series. This week, spot market sales 
activities have been light due to a short trading week. With milk supplies 
available in the region, low/medium heat NDM production is operating on 
steady schedules. Inventories are adequate for contractual needs. The demand 
is showing signs of weakness as some market participants are not looking to 
buy low/medium heat NDM and are watching to see where the prices will go. 
The market tone has softened. Prices for high heat NDM held steady this 
week. Production continues to have limited drying time. Inventories have 
reduced and are limited outside of contractual needs. The market undertone 
is generally steady. Wednesday's CME Group cash trading for Grade A nonfat 
dry milk closed at $0.8500, up $0.0050 from last Wednesday. 

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .8450 -  .9400          MOSTLY:   .8800 - .9200               
HIGH HEAT:         .9900 - 1.0900                                               
              
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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