MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  October 05, 2017 (REPORT 40)                                      

NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Low/medium heat nonfat dry milk (NDM) prices in the Central region 
decreased on the range and the bottom of the mostly price series. Low/medium 
heat NDM inventories are available. Low/medium heat NDM production continues 
to slacken, as milk output in the Central region has edged back. Generally, 
NDM market tones are bearish. However, as milk output has slowed a bit and 
dryer time has begun a shift into other directions, there are some signs 
that inventories will become more manageable in the near term. High heat NDM 
prices dropped on the bottom of the range. Spot trades of high heat NDM are 
beginning to increase. Inventories of high heat NDM are continue to slowly 
build ahead of the fall baking push. The CME Group monthly average price for 
Grade A NDM during September was $0.8320, compared to $0.9160 a year ago. 
The DMN monthly average of the mostly price series for Central and East 
low/medium heat NDM during September was $0.8826, compared to $0.9212 a year 
ago.
EAST: Current prices for low/medium heat nonfat dry milk (NDM) have 
decreased this week. Spot sale trading activity is steady to lower as market 
participants are purchasing, but at decreased prices. Balancing operations 
are clearing steady to lower milk volumes. Low/medium heat NDM production 
has decreased as manufacturers are working on maintenance to dryers and are 
taking in lower milk loads. Supplies are available. The demand is steady to 
lower as market participants are watching to see where the price goes. The 
market undertone is weak. High heat NDM prices slid down on the bottom of 
the range. Production has picked up some in a few balancing plants. 
Manufacturers have very limited inventories. Spot activity is quiet. The 
market tone for high heat NDM is generally stable. The DMN monthly average  e 
of the range price series for Central and East low/medium heat NDM during 
September 2017 was $0.8775, compared to $0.9089 a year ago. The September 2017 
monthly average of the range price series for Central and East high heat was 
$1.0198 compared to $1.0312 a year ago.

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .8200 - .8900          MOSTLY:   .8450 - .8800               
HIGH HEAT:         .9625 - 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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