Nonfat Dry Milk - Central and East
USDA - Thu Jan 10, 10:33AM CST
MD_DA650

     Nonfat Dry Milk - Eastern and Central U.S.

     Report 2 - Released on January 10, 2019

     CENTRAL: Regional low/medium heat nonfat dry milk (NDM) sales took off this week after an
     extended, seasonal quiescence. Low/medium heat NDM prices shifted up in all facets.
     Producers are maintaining a condensed skim drying push, as demand has picked up both
     domestically and from Mexico. Inventories are tighter than some contacts expected them to
     be. High heat NDM prices rose considerably, falling in line with low/medium heat prices.
     Demand for high heat NDM is steady, and inventories are balanced to tight. Although
     experiencing some marked weakness in 2018, contacts point out that NDM prices slowly moved
     up throughout the year, and year-end prices were roughly $.20 to $.30 higher than at the
     onset of the year. Current and near-term market tones are bullish.
     EAST: Low/medium heat nonfat dry milk prices in the region have strengthened on all sides of
     the range and mostly prices series. Coming off the holidays, many buyers are back on the
     spot market and willing to purchase loads at current market prices. Spot load availability
     is steady to somewhat tight in the East, as some manufacturers are not offering on the spot
     market. Drying schedules have increased in many balancing operations due to more available
     milk in the area. However, inventories are fairly short and the majority of supplies are
     committed to contracts currently. The market undertone has firmed. High heat nonfat dry milk
     prices have increased this week. Spot trades are light, however some market participants are
     securing loads at heightened prices. There are some anticipations of prices continuing to
     increase in the near future. A few manufacturers are taking some time to dry high heat,
     however other operations are focused on drying low/medium heat currently. The DMN monthly
     average of the range price series for Central and East low/medium heat NDM during December
     2018 was $0.9125, compared to $0.8094, the 2018 yearly average. The December 2018 monthly
     average of the range price series for Central and East high heat NDM was $1.0278 compared
     to $0.9701, the 2018 yearly average.
     Prices for: Eastern and Central U.S., All First Sales, F.O.B., Extra Grade & Grade A,
     Conventional, and Edible Nonfat Dry Milk
     Price Range - Low & Medium Heat; $/LB:                 .8900 - 1.0000
     Mostly Range - Low & Medium Heat; $/LB:                .9400 - .9750


     Prices for: Eastern and Central U.S., All First Sales, F.O.B., Extra Grade & Grade A,
     Conventional, and Edible Nonfat Dry Milk
     Price Range - High Heat; $/LB:                         1.0400 - 1.1200


     Information for the period January 7 - 11, 2019, issued weekly

     Secondary Sourced Information:

     The December 2018 NDM monthly average price, at the CME Group, is $0.9241 compared to
     $0.8053, the 2018 yearly average.

     Wednesday at the CME Group Grade A NDM closed at $1.0025, up $0.0525 compared to last
     Wednesday.

     Published by:
     Dairy Market News - Madison, WI
     ISRAEL WEBER, 608-422-8601
     Email: israel.weber@ams.usda.gov
     JESSICA MUELLER, 608-422-8589
     Email: jessica.mueller@ams.usda.gov

     Additional Dairy Market News Information:
     Dairy Market News (DMN) by Phone: (608)422-8602
     DMN Website: http://www.ams.usda.gov/market-news/dairy
     DMN Database Portal: http://www.marketnews.usda.gov/mnp/da-home