Nonfat Dry Milk - Central and East
USDA - Thu Mar 08, 11:19AM CST
MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  March 08, 2018 (REPORT 10)                                        

NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Prices of low/medium heat nonfat dry milk (NDM) slipped on the top 
of the range and bottom of the mostly price series. Following an active 
previous week, this week's spot market was relatively placid. Undoubtedly, 
the NASS Dairy Products report reinstated a frequent murmur heard around the 
industry: NDM inventories are unnervingly high. Domestic demand has been 
reported as sluggish, and recently active Mexican buying is beginning to 
trend lower as well. Central region contacts are expressing concerns about 
spring flush level milk intakes, particularly in regards to condensed skim 
drying and NDM inventory levels. High heat NDM prices shifted lower on the 
bottom of the range, during a steady trading week. Central region high heat 
NDM inventories are mixed, while buying interest is on the increase. As 
market prices hover just above historic low points, market analysts question 
when, or better yet how, NDM market prices will reverse the trend. The CME 
Group monthly average price for Grade A NDM during February was $0.7097, 
compared to $0.9000 a year ago. The DMN monthly average of the mostly price 
series for Central and East low/medium heat NDM during February was $0.7250, 
compared to $0.9882 a year ago. The NASS Dairy Products report noted U.S. 
human NDM production during January 2018 in the Central region totaled 31.2 
million pounds, 10.5 percent higher than one year ago. Total U.S. human NDM 
production during January 2018 was 161.7 million pounds, 5.4 percent higher 
than last year. Total U.S. NDM, human, month ending stocks for January were 
340.2 million pounds, 50 percent above a year ago. 
EAST: In the East, low/medium heat nonfat dry milk prices are steady to 
lower. Some processors are gradually stepping up NDM production as condensed 
skim supplies increase seasonally. NDM supplies are readily available for 
spot sales, but demand is lackluster. Buyers still tend to purchase around 
their immediate needs. The market tone is weaker. High heat nonfat dry milk 
prices are steady to lower. Production is intermittent. Inventories are 
sufficient. The DMN monthly average price during February 2018, in the range 
series, for East and Central low/medium heat NDM was $0.7217, compared to 
$0.9721 a year ago. The monthly average for East and Central high heat NDM 
was $0.9013, compared to $1.1114 a year ago. At the CME Group, the February 
2018 NDM monthly average price was $0.7097, compared to $0.9000 the previous 
year.
DAIRY PRODUCTS: According to NASS, January 2018 U.S. production of human 
food nonfat dry milk totaled 28.1 million pounds in the Atlantic region, 3.1 
percent less than a year ago and 7.8 percent below the previous month. The 
January 2018 U.S. production of skim milk powder totaled 45.8 million 
pounds, 17.2 percent less than a year ago and 8.3 percent less than last 
month. 

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .6800 - .7550          MOSTLY:   .7000 - .7400               
HIGH HEAT:         .8300 - .9800                                                


The Foreign Agricultural Service (FAS), reports that January 2018 U.S. 
nonfat dry milk exports totaled 109.4 million pounds, an increase of 4 
percent over the previous year.

U.S. NDM Exports, H.S. Code 0402100000(FAS)
                 2018 Exports      % Change From 
                 (Million Lb.)       1 Year Ago

January Total          109.4           +  4

TOTAL, JAN             109.4           +  4
 1 Mexico               45.1           +  8
 2 Indonesia            12.8           +  8
 3 Philippines          10.8           - 35
 4 Vietnam               7.1           +  6
 5 Pakistan              6.1           + 36




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: www.ams.usda.gov/dairymarketnews
Dairy Market News database portal: http://www.marketnews.usda.gov/mnp/da-
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