Nonfat Dry Milk - Central and East
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 608.422.8605 608.422.8601 
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