MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  May 23, 2013 (REPORT 21)                                          

NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL:  Nonfat dry milk prices are unchanged to lower on the mostly, and 
lower on both ends of the range.  Market participants report buyer interest 
for F.O.B. spot loads ground to a halt this week.  Contract fulfillment 
represents the majority of sales transactions.  Some end users may have 
unfilled needs for the balance of Q2, but just in time buying methods are in 
place now.  There are limited concerns that near term NDM needs cannot be 
filled via a single phone call or email to producers or resellers.  Some 
additional resale loads were noted in the marketplace and may be filling 
some Central region needs.  NDM producers anticipate interest will resurface 
in early to mid-June.  Nonfat dry milk production is higher for the week as 
a few plants are benefitting from Eastern milk conveyed to the Central for 
processing room.  Nonfat dry milk inventories are steady to building. 
EAST:  Low heat nonfat dry milk prices marginally declined as spot sales 
lowered the low end of the range.  High heat prices were unchanged in light 
trading.  Production of nonfat dry milk has expanded, due to the increase in 
the manufacturing milk supply ahead of the upcoming holiday.  Most nonfat 
dry milk manufacturers are focusing on low heat NDM production, to better 
manage the increase in milk volumes.  Most manufacturers' inventories are 
adequate for future contract commitments, but limited for spot sales as good 
sales activity over the past number of weeks has lowered uncommitted 
supplies.  High heat inventories are fairly tight, due to the limited 
ability to schedule production runs.  Demand remains lackluster with 
potential buyers considering purchases of condensed skim and/or dry 
buttermilk as a lower priced alternative.  The market undertone is steady to 
weaker.

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:  1.6600 - 1.7300         MOSTLY:  1.6800 - 1.7300              
HIGH HEAT:        1.7250 - 1.8000                                               

1100C janet.linder@ams.usda.gov & rick.whipp@ams.usda.gov