MD_DA650 DA MD DA650 Nonfat Dry Milk - Central and East MADISON, WI. October 12, 2017 (REPORT 41) NONFAT DRY MILK - CENTRAL AND EAST CENTRAL: Low/medium heat nonfat dry milk (NDM) prices in the Central region decreased on the bottom of the range and bottom of the mostly price series. Low/medium heat NDM inventories are plentiful. Low/medium heat NDM production is slowing. The NDM market tone is weak. Downward pressure, caused by global surpluses of SMP and the diminishing prices of protein alternatives, have the once resilient NDM market beginning to bow to fate. High heat NDM prices are unchanged. Spot activity of high heat NDM remains fairly quiet. Inventories of high heat NDM are slowly building, yet remain based primarily on contractual obligations. The NASS Dairy Products report noted U.S. human NDM production during August 2017 in the Central region totaled 26.2 million pounds, 22.2 percent higher than one year ago. Total U.S. human NDM production during August 2017 was 136.4 million pounds, 15.9 percent higher than last year. During January-August 2017, U.S. human NDM production totaled 1.243 billion pounds, 3.1 percent more than the same time span in 2016. Total U.S. NDM, human, month ending stocks for August were 307.8 million pounds, 31.0 percent above a year ago. EAST: Low/medium heat nonfat dry milk (NDM) prices are lower in the range and the mostly series in marginal trading. The market undertone continues to weaken. Inventories are heavy. Demand for low heat NDM is light to moderate, in a buyers' market. Some producers rely heavily on standing domestic and export contractual customers to ease their holdings. Spot market buyers are hesitant, while looking for deals to cover near term commitments. Producers' offers are plentiful. Plant output is steady, as condensed skim clearing to Class II increases. High heat NDM prices are unchanged in a quiet market. Stocks are adequate for near term customer needs. U.S. NDM Exports, H.S. Code 0402100000(FAS) 2017 Exports % Change From (Million Lb.) 1 Year Ago August Total 108.1 - 6 TOTAL, JAN - AUGUST 880.6 + 11 1 Mexico 407.7 + 17 2 Philippines 113.4 + 1 3 China 54.2 + 86 4 Indonesia 47.9 - 39 5 Malaysia 41.6 + 17 F.O.B. CENTRAL/EAST: Includes EXTRA GRADE and GRADE A LOW/MEDIUM HEAT: .8050 - .8900 MOSTLY: .8400 - .8800 HIGH HEAT: .9625 - 1.0500 1100CT Daniel.Johnson@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- home