Nonfat Dry Milk - Central and East
USDA - Thu Dec 07, 1:22PM CST
MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  December 07, 2017 (REPORT 49)                                     

NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Low/medium heat nonfat dry milk (NDM) prices in the Central region 
are mostly lower. Low/medium heat NDM production is relatively active. 
Low/medium heat NDM inventories are available, but some contacts have 
pointed out that spot loads at the lower end of the price range are becoming 
scarce. The NDM market tone is unstable. High heat NDM prices are mixed. 
Spot activity of high heat NDM was a bit more active than last week. High 
heat NDM producers report that inventories are available, whereas interest 
is light to steady. Production of high heat NDM is unchanged. 
The DMN monthly average of the range price series for Central and East 
low/medium heat NDM during November 2017 was $0.7555, compared to $0.9268 a 
year ago. The November 2017 monthly average of the range price series for 
Central and East high heat NDM was $0.9464 compared to $1.0571 a year ago. The 
CME Group monthly average price for Grade A NDM during November was $0.7234, 
compared to $0.8914 a year ago. The DMN monthly average of the mostly price 
series for Central and East low/medium heat NDM during November was $0.7599, 
compared to $0.9177 a year ago. The NASS Dairy Products report noted U.S. 
human NDM production during October 2017 in the Central region totaled 24.1 
million pounds, 15.8 percent lower than one year ago. Total U.S. human NDM 
production during October 2017 was 149.2 million pounds, 6.5 percent higher 
than last year. During January-October 2017, U.S. human NDM production 
totaled 1.524 billion pounds, 3.7 percent more than the same time span in 
2016. Total U.S. NDM, human, month ending stocks for October were 328 
million pounds, 46.5 percent above a year ago.
EAST: Low/medium heat nonfat dry milk (NDM) prices dropped on the range and 
the top of the mostly. Production is steady to strong, as milk is available 
throughout the region. Inventories are adequate for buyer/end users' needs. 
Trading activity is steady as prices are lower. Demand is steady to somewhat 
increased as supplies are offered at cheap prices. The market tone is 
generally weak. High heat NDM prices slid on the bottom of the range. Offers 
on the spot market are few, but some manufacturers are taking time to dry 
high heat, allowing more available product into the market. The tone for 
high heat is steady as prices are lower and the demand is light.        
DAIRY PRODUCTS: According to NASS, October 2017 U.S. production of human food 
nonfat dry milk in the Atlantic region totaled 24.6 million pounds, 13.2 
percent less than a year ago, but 11.4 percent above the previous month. 
Cumulative 2017 U.S. year to date skim milk powder production through 
October totals 440.4 million pounds, a 3.6 percent decrease from 2016.
F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .6775 - .7750          MOSTLY:   .7000 - .7500               
HIGH HEAT:         .8500 - .9500                                                
                                                                               
U.S. NDM Exports, H.S. Code 0402100000(FAS)
                 2017 Exports      % Change From 
                 (Million Lb.)       1 Year Ago

October Total          112.7           - 33

TOTAL, JAN - OCT     1,082.0            ...
 1 Mexico              505.8            ...
 2 Philippines         131.6           - 13
 3 China                66.8           + 99
 4 Indonesia            95.3           - 42
 5 Malaysia             51.1           + 10

1100CT Israel.Weber@ams.usda.gov 608.422.8601
Jessica.Mueller@ams.usda.gov 608.422.8589
Jennifera.Hernandez@ams.usda.gov 608.422.8597  
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