Nonfat Dry Milk - Central and East
USDA - Thu Nov 09, 10:57AM CST
MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  November 09, 2017 (REPORT 45)                                     

NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Low/medium heat nonfat dry milk (NDM) prices in the Central region 
declined on the bottom and top of both the range and mostly price series. As 
prices have continued downward, spot market activity has picked up. 
Low/medium heat NDM production has slowed, but inventories of low/medium 
heat NDM are available and outweigh current demand. The NDM market tone is 
unstable. High heat NDM prices declined on the bottom of the range. Spot 
activity of high heat NDM was steady and is expected to increase, as 
production and availability are edging up for the holiday buying season. The 
CME Group monthly average price for Grade A NDM during October was $0.7761, 
compared to $0.8852 a year ago. The DMN monthly average of the mostly price 
series for Central and East low/medium heat NDM during October was $0.8485, 
compared to $0.9262 a year ago. The NASS Dairy Products report noted U.S. 
human NDM production during September 2017 in the Central region totaled 
26.3 million pounds, 6.9 percent higher than one year ago. Total U.S. human 
NDM production during September 2017 was 133.4 million pounds, 6.2 percent 
higher than last year. During January?September 2017, U.S. human NDM 
production totaled 1.375 billion pounds, 3.4 percent more than the same time 
span in 2016. Total U.S. NDM, human, month ending stocks for September were 
321.1 million pounds, 48.6 percent above a year ago.
EAST: Low/medium nonfat heat dry milk (NDM) prices continue to trend lower 
in a week of considerably active spot trading. Prices declined through the 
range and mostly series. Some market sources are suggesting that, ?price 
validity is stirring a lot of action from buyers and therefore business is 
good?. Overall, demand is moderate to good with contracts helping to clear 
current NDM production. Low/medium heat NDM production is seasonally steady. 
Second tier traders/brokers reportedly are discounting markedly lower than 
manufacturers? pricing and markets to reduce holdings. High heat nonfat dry 
milk spot sales are minimal, apart from customer commitments. Meanwhile, 
offers are picking up with production, as seasonal holiday baking activity 
advances. The market undertone is steady. The DMN monthly average of the 
range price series for Central and East low/medium heat NDM during October 
2017 was $0.8355, compared to $0.9361 a year ago. The October 2017 monthly 
average of the range price series for Central and East high heat NDM was 
$1.0005 compared to $1.0760 a year ago. The October 2017 NDM monthly average 
price, at the CME Group, is $0.7761 compared to $0.8852 the previous year.
DAIRY PRODUCTS: According to NASS, September 2017 U.S. production of human 
food nonfat dry milk, in the Atlantic region, totaled 22.1 million pounds, 
14.8 percent more than a year ago, but 13.2 percent below the previous 
month. Cumulative year-to-date human food nonfat dry milk production, 
through September 2017, totals 1.38 billion pounds, a 3.4 percent rise over 
2016. The September 2017 U.S. production of skim milk powder totaled 30.4 
million pounds, 21 percent less than a year ago and 33.6 percent less than 
last month. Cumulative 2017 U.S. year to date skim milk powder production 
through September totals 417.2 million pounds, a 0.4 percent increase from 
2016.

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .6800 -  .8200          MOSTLY:   .7500 - .7950               
HIGH HEAT:         .9200 - 1.0300                                               


The Foreign Agricultural Service (FAS), reports that September 2017 U.S. 
nonfat dry milk exports totaled 88.7 million pounds, a 29 percent decline 
from a year ago.

U.S. NDM Exports, H.S. Code 0402100000(FAS)

                 2017 Exports      % Change From 
                 (Million Lb.)       1 Year Ago

September Total         88.7           - 29

TOTAL, JAN ? SEP       969.3           + 6
 1 Mexico              453.8           + 10
 2 Philippines         117.9           - 7
 3 China                59.6           + 92
 4 Indonesia            50.9           - 43
 5 Malaysia             46.6           + 13


1100CT Daniel.Johnson@ams.usda.gov 608.422.8605 
Israel.Weber@ams.usda.gov 608.422.8601 
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-
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