MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  August 17, 2017 (REPORT 33)                                       

NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Low/medium heat nonfat dry milk (NDM) prices in the Central U.S. 
decreased on the top of the range, while holding steady on the mostly price 
series. Spot trading activity remained light. Some buyers reported that they 
plan to delay any purchases for the next two to three weeks, as there are 
some expectations that the market may weaken. Low/medium heat NDM 
inventories are reportedly available. Low/medium heat NDM production is a 
bit lighter, with less milk availability in the region. The low/medium heat 
NDM market undertone is fairly steady. High heat NDM prices slid on the 
bottom of the range and decreased on the top of the range. Spot sale trading 
of high heat NDM was up a bit from last week. Production and inventories of 
high heat are slightly lower, and primarily centered on contracts. 
EAST: Low/medium heat nonfat dry milk (NDM) prices are steady to lower in 
the range, with a weak market undertone. Some market participants suggest 
that NDM is "dead in the water", with prices close to bottoming out. Hence, 
sources indicate the low/medium heat NDM spot market is being pressured by a 
few higher index enthusiasts, but with some pushback. Eastern low/medium 
heat NDM processors are reporting lighter production rates, as slowdowns in 
milk production prompt declines in milk supply receipts. Interest from 
cheesemakers show signs of waning slightly, as manufacturers work off stocks 
acquired earlier in the year. Demand from other domestic end-users is 
adequate. Sources report that active exports, going into Mexico, are helping 
to balance out a few NDM inventories. In the interim, the futures market 
shows prices increasing through Q4. High heat NDM prices declined through 
the range on f.o.b. spot trading. Production is mostly based on customers' 
needs. High heat NDM inventories are light to moderate. The market undertone 
is in line with weakness in low/medium heat NDM markets. 

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .8500 -  .9400         MOSTLY:   .8700 - .9200               
HIGH HEAT:         .9950 - 1.0500                                               

1100CT daniel.johnson@ams.usda.gov 608.422.8605 
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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