MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  November 19, 2009 (REPORT 46)                                     

NONFAT DRY MILK - CENTRAL AND EAST                                              

CENTRAL: Central nonfat dry milk prices are both higher and lower on a mixed 
market.  Low heat NDM production is lower than hoped for at a few plants as a 
resurgence of Class I orders sent higher milk volumes to bottlers.  Seasonally 
strong condensed skim sales and half-day plant shutdowns are also paring down 
the amount of NDM loads moving through the dryers.  Contract NDM loads are 
moving steadily, but spot loads are scarce.  Some Western NDM is clearing into 
the Central region to makeup up for regional supply deficits.  According to the 
latest Foreign Agricultural Service report, January - October 2009 imports of 
dried skim milk in the high tier category totals about 1.2 million pounds.  This 
total is about thirteen times the amount imported during the same months of 
2008.  There were no quota dried skim milk imports during the first ten months 
of 2009, compared to the same time span in 2008, when about 67,000 pounds were 
imported.  The entire tariff-rate quota of 11.6 million pounds for 2009 is still 
available for dried skim milk.  On November 17, the Commodity Credit Corporation 
issued Invitation 004 to Announcement RSCS2 - Sale of CCC-Owned Nonfat Dry Milk 
for the Manufacture of Casein or Caseinate.  Up to 1 million pounds in 25 kg 
bags is available on a where-is, as-is basis.  Offers must be received no later 
than December 1, 2009.  Successful offerors are currently scheduled to be 
notified by December 2, 2009.  The Announcement can be accessed at the following 
web location:  http://www.fsa/usda.gov/Internet/FSA_File/rscs2.pdf
EAST:  Manufacturing milk supplies continue to run tight for NDM production as 
most fluid supplies are absorbed by Class I, II, and III production.  Prices for 
NDM are somewhat mixed as the low end of the range advanced, but buyers are 
resistant to prices at the high end of the range as most users appear to be 
content to await the expected supply increases that typically occur with the 
holidays.  Those users needing additional loads are securing supplies from the 
West.  Increased manufacturing supplies over the Thanksgiving Holiday may not be 
adequate for NDM manufacturers, who are behind on contracts, to catch up.  
                                                                                
F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:  1.2000 - 1.4600         MOSTLY:  1.2000 - 1.3600              
HIGH HEAT:        1.2200 - 1.5500                                               

11:00 rick.whipp@ams.usda.gov & janet.linder@ams.usda.gov