MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  September 07, 2017 (REPORT 36)                                    

NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Low/medium heat nonfat dry milk (NDM) prices in the Central region 
remained steady on the range, while slightly decreasing on the top of the 
mostly price series. Spot trading activity was light in the short trading 
week. Low/medium heat NDM inventories are available. Low/medium heat NDM 
production is generally steady, only slightly lower than in previous weeks. 
The low/medium heat NDM market undertone is somewhat steady. High heat NDM 
prices increased on the bottom of the range. Spot sale activity of high heat 
NDM was fairly quiet. Inventories and production of high heat NDM is 
currently steady, however with baking season approaching there are some 
expectations that high heat NDM drying will increase in the near term. The 
NASS Dairy Products report noted U.S. NDM (human) production during July 
2017 in the Central region totaled 29.7 million pounds, 11.2 percent higher 
than one year ago. Total U.S. human NDM production during July 2017 was 
148.4 million pounds, 1.6 percent lower than last year. During January-July 
2017, U.S. NDM (human) production totaled 1.106 billion pounds, 1.8 percent 
more than the same time span in 2016. Total U.S. NDM (human) month ending 
stocks for July were 298.8 million pounds, 16.2 percent above a year ago. 
The CME Group monthly average price for Grade A NDM during August was 
$0.8491, compared to $0.8454 a year ago. The DMN monthly average of the 
mostly price series for Central and East low/medium heat NDM during August 
was $0.8954, compared to $0.8801 a year ago.
EAST: Low/medium heat nonfat dry milk (NDM) prices are steady on the range, 
but inched down on the top of the mostly price series this week. Market 
participants are actively bidding on spot sales, but at prices lower than 
offered prices. Some balancing plants took in heavier milk volumes this week 
than expected. Although plants are taking in steady to more milk loads, 
drying schedules have decreased in balancing operations. Inventories are 
adequate for contractual needs. The demand is steady to stagnate. The market 
undertone is generally sluggish as stocks have the upper hand on current 
interest. High heat NDM prices shifted up on the bottom of the range this 
week. Spot activity is fairly bearish in the East. A couple plants have 
freed up drying schedules for high heat NDM. Inventories are tight to 
marginally growing. The tone for high heat NDM is stable. The DMN monthly 
average of the range price series for Central and East low/medium heat NDM 
during August 2017 was $0.8952, compared to $0.8732 a year ago. The August 
2017 monthly average of the range price series for Central and East high 
heat was $1.0284 compared to $0.9704 a year ago.

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .8500 - .9200          MOSTLY:   .8700 - .9100               
HIGH HEAT:         .9900 - 1.0500                                               

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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