MD_DA650 DA MD DA650 Nonfat Dry Milk - Central and East MADISON, WI. August 10, 2017 (REPORT 32) NONFAT DRY MILK - CENTRAL AND EAST CENTRAL: Low/medium heat nonfat dry milk (NDM) prices in the Central U.S. decreased slightly at the bottom of the mostly price series, while holding steady on the price range. Spot trading activity was lighter than in previous weeks. Low/medium heat NDM inventories are generally available, and the NASS Dairy Products report noted a large increase of stocks compared to this time last year. Brokers report that buyers are holding off on spot purchases, awaiting the possibility of market changes. Low/medium heat NDM production has slowed with lessening seasonal milk intakes, but remains the primary focus of dryers in the Central region. The low/medium heat NDM market undertone is uncertain. High heat NDM prices were unchanged. Spot sale trading of high heat NDM mirrored low/medium heat NDM and was relatively slow. Production and inventories of high heat NDM are on par with manufacturers' contractual necessities. The NASS Dairy Products report noted U.S. human NDM production during June 2017 in the Central region totaled 31.5 million pounds, 5.8 percent higher than one year ago. Total U.S. human NDM production during June 2017 was 163.7 million pounds, 11.6 percent higher than last year. During January-June 2017, U.S. human NDM production totaled 958.4 million pounds, 2.4 percent more than the same time span in 2016. Total U.S. NDM, human, month ending stocks for June were 297.5 million pounds, 28.9 percent above a year ago. The CME Group monthly average price for Grade A NDM during July was $0.8616, compared to $0.8638 a year ago. The DMN monthly average of the mostly price series for Central and East low/medium heat NDM during July was $0.9000, compared to $0.8774 a year ago. The July monthly average of the range price series for Central and East high heat was $1.0440 compared to $0.9531 a year ago. EAST: Prices for low/medium heat nonfat dry milk (NDM) held steady on the range, but slightly shifted down on the bottom of the mostly price series. Market participants communicate many spot sales are being priced around the mostly series. Dairy individuals report seeing many offers from suppliers. Sales have been steady to light. With the current heat, milk production is decreasing on the farms. Bottling plants have picked up production as schooling institutions will be reopening. Many balancing plants are taking in lower milk volumes. Eastern low/medium heat NDM production has decreased. Inventories are adequate for contractual needs and spot load requests. The market tone is stable, with signs of weakness as spot sales have been minimal and prices are mostly stagnate. High heat NDM prices are unchanged. Spot sales activity is light. Production is down, but there are anticipations it will pick up in the near future. Inventories are short, and the market undertone is steady. The DMN monthly average of the range price series for Central and East low/medium heat NDM during July 2017 was $0.9023, compared to $0.8824 a year ago. Wednesday's CME Group cash trading for Grade A nonfat dry milk closed at $0.8500, down $0.0150 from last Wednesday. F.O.B. CENTRAL/EAST: Includes EXTRA GRADE and GRADE A LOW/MEDIUM HEAT: .8500 - 0.9500 MOSTLY: .8700 - .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 June Total 100.9 + 8 TOTAL, JAN - JUNE 679.4 + 20 1 Mexico 317.2 + 27 2 Philippines 81.7 - 8 3 China 45.0 + 125 4 Indonesia 33.7 - 27 5 Malaysia 31.5 + 32 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