MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  July 27, 2017 (REPORT 30)                                         

NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Low/medium heat nonfat dry milk (NDM) prices in the Central U.S. 
slipped at the top of the price range, but remained steady on the mostly 
price series. Spot trading activity was moderate. Low/medium heat NDM 
production continues to be the primary focus of dryer time, leading to 
plentiful stores. The low/medium heat NDM market undertone is on solid 
ground. Contacts suggest Mexican end users are actively bidding after a 
quiet fortnight. High heat NDM prices held steady. Spot sale trading of high 
heat NDM was quieter than the previous week. Production and inventories of 
high heat NDM are generally focused on contractual obligations. 
EAST: Prices for low/medium heat nonfat dry milk (NDM) in the East shifted 
downward on the top of the range, but held steady on the mostly price series 
this week. A few suppliers are offering spot loads at higher prices, but 
interest is limited. With Eastern areas still producing heavy amounts of 
milk, low/medium heat NDM production is strong, as dryers are running on 
packed schedules, taking up most drying time. As dryers are continuously 
pumping out low/medium heat NDM, inventories are adequate for contractual 
needs and spot load requests. The demand is moderate to light as a handful 
of end users are purchasing spot loads, but at prices lower than what the 
suppliers are looking to sell for. The market undertone is generally fair. 
Eastern high heat NDM prices are stable. Spot activity is limited as a 
number of market participants are not offering high heat currently. The 
demand is moderate as some market participants have a need for high heat and 
are willing to purchase at prices on the top end of the price series. In 
addition, production is light to quiet, but there are anticipations of 
production picking up in the near future. High heat NDM inventories are 
short. The market tone is steady. Wednesday's CME Group cash trading for 
Grade A nonfat dry milk closed at $0.8600, no change in price from last 
Wednesday.

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .8500 - .9600          MOSTLY:   .8800 - .9200               
HIGH HEAT:        1.0000 - 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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