MD_DA650 DA MD DA650 Nonfat Dry Milk - Central and East MADISON, WI. July 13, 2017 (REPORT 28) NONFAT DRY MILK - CENTRAL AND EAST CENTRAL: Low/medium heat nonfat dry milk (NDM) prices in the Central U.S. inched up on the bottom of the range, while the mostly price series remained steady. Spot trading activity, outside the CME, was relatively quiet. However, some contacts suggest contract sales have begun to pick up. Low/medium heat NDM production continues to be the primary focus of dryer time. Inventories remain available. The low/medium heat NDM market undertone remains solid. High heat NDM prices also edged up on the bottom of the price range. Spot sale trading of high heat NDM was steady this week. Production and inventories of high heat NDM are contractually based, although some producers expect high heat production to begin picking up in the next few weeks. The NASS Dairy Products report noted U.S. human NDM production during May 2017 in the Central region totaled 32.9 million pounds, 11.5 percent lower than one year ago. Total U.S. human NDM production during May 2017 was 168.0 million pounds, 1.2 percent higher than last year. During January-May 2017, U.S. human NDM production totaled 794.4 million pounds, 0.6 percent more than the same time span in 2016. Total U.S. NDM, human, month ending stocks for May were 282.3 million pounds, 21.6 percent above a year ago. EAST: Prices for low/medium heat nonfat dry milk (NDM) in the East region shifted slightly higher on the bottom of the range price series this week. Although the bottom of the pricing series has inched up, spot sale trading is not showing signs of improvement for loads at prices outside of the range price series. Production is strong as most dryers' schedules are focused on low/medium heat NDM. With constant output, inventories are building. The demand is weakening as a number of market participants report moderate to minimal sales activity. The market undertone has been soft, but showing some signs of stability. High heat NDM prices inched up on the bottom of the range price series this week. Production has limited drying time, but some manufacturers are drying high heat for contractual needs. Inventories are light and the market tone is fairly firm. DAIRY PRODUCTS: According to NASS, U.S. production of human food nonfat dry milk in the Atlantic region totaled 37.4 million pounds, 3.7 percent more than a year ago and 2.5 percent above the previous month. The May 2017 U.S. production of skim milk powder totaled 51.0 million pounds, 0.3 percent more than a year ago and 1.6 percent more than last month. Cumulative 2017 U.S. year to date skim milk powder production through May totals 249.2 million pounds, a 10.2 percent increase from May 2016. Wednesday's CME Group cash trading for Grade A nonfat dry milk closed at $0.8700, up $0.0200 from last Wednesday. F.O.B. CENTRAL/EAST: Includes EXTRA GRADE and GRADE A LOW/MEDIUM HEAT: .8500 - .9400 MOSTLY: .8800 - .9200 HIGH HEAT: 1.0000 - 1.0900 U.S. NDM Exports, H.S. Code 0402100000(FAS) 2017 Exports % Change From (Million Lb.) 1 Year Ago May Total 129.4 + 32 TOTAL, JAN - MAY 578.4 + 22 1 Mexico 266.9 + 25 2 Philippines 66.1 - 15 3 China 39.9 + 148 4 Indonesia 29.5 - 11 5 Malaysia 27.8 + 40 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