MD_DA650

     Nonfat Dry Milk - Eastern and Central U.S.

     Report 49 - Released on December 06, 2018

     Central: The low/medium heat nonfat dry milk (NDM) price range narrowed this week, as a
     growing number of trades are pushing into the low $.90s. The mostly price series also
     reflected this, moving up one penny on the bottom while remaining steady on the top. Trading
     activity was steady to busier on the spot market, as Mexican buyers are showing increased
     interest. Some traders suggest Q1 2019 contracts are in the works and/or wrapping up at +
     $.90. Contacts in the Midwest suggest newly produced loads are tight, while inventories from
     late spring and summer are available. Milk volumes are edging up slightly, and with firming
     markets some contacts expect drying activity to increase in the near term. The current NDM
     market tone is firm.
     EAST: Low/medium heat nonfat dry milk f.o.b. spot prices remain strong. Spot market sales
     adjusted prices higher in the range and mostly series. Domestic NDM interest is not as
     aggressive as prices indicate, however, current market strength begs to differ as active
     trading into Mexico occurs. Some brokers are moving an increasing number of less-than-load
     (LTL) NDM shipments in the region, as buyers make purchases according to their immediate
     needs. While NDM interest is light to moderate, some producers report heavier condensed skim
     clearing to dryers, leaving to question the volume of condensed skim moving to Class III
     production, which was recently reported as heavy. NDM low/medium heat stocks range from
     fully committed and light, to readily available. Inventory considerations are more evident
     now that the market is into December. High heat prices are stronger on modest trading. Some
     manufacturers will likely increase production in the coming weeks. Demand is moderate for
     high heat NDM.  The DMN monthly average of the mostly price series for Central and East
     low/medium heat NDM during November was $0.9012, compared to $0.9000 in October.
     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 - .9400
     Mostly Range - Low & Medium Heat; $/LB:                .9000 - .9200


     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:                         1.0100 - 1.0600

     Information for the period December 3 - 7, 2018, issued weekly

     Secondary Sourced Information:

     The CME Group monthly average price for Grade A NDM during November was $0.8856, compared
     to $0.8691 in October.

     Dairy Products Report ± Nonfat Dry Milk, Human Summary
     Released December 4, 2018, by the National Agricultural Statistics Service (NASS),
     Agricultural Statistics Board, United States Department of Agriculture (USDA).

     Nonfat Dry Milk, Human  Production ± States and United States:  2017 and  2018
                               Monthly Production (1000 pound       Percent Change from
                               October   September    October        October  September
     Region                       2017        2018       2018           2017       2018
     United States             145,008     108,826    125,290          -13.6       15.1

     Atlantic                   20,343      20,941     22,562           10.9        7.7
        Pennsylvania            12,558       9,515     10,706          -14.7       12.5

     Central                    24,269      19,037     18,756          -22.7       -1.5

     West                      100,396      68,848     83,972          -16.4       22.0
        California              53,005      32,706     49,322           -6.9       50.8

     Other States 1/            79,445      66,605     65,262          -17.9       -2.0
     1/ States not shown when fewer than 3 plants reported or individual plant operations could
     be disclosed.

     Nonfat Dry Milk, Human Production ± Cumulative Production January - October
                     Cumulative Production     Percent Change
                           (1000 pounds)           from
     Report Month        2017         2018         2017
     October        1,529,698    1,468,708           -4

                                         Manufacturers' stocks end-of-month 3/
                              End of month stocks (1000 pounds)     Percent Change from
                               October   September    October        October  September
     Product                      2017        2018       2018           2017       2018
     Nonfat Dry Milk, Human    316,826     262,320    252,935           -20.2      -3.6
     3/ Stocks held by manufacturers at all points and in transit.
                                           Manufacturers' shipments 4/
                              End of month stocks (1000 pounds)     Percent Change from
                               October   September    October        October  September
     Product                      2017        2018       2018           2017       2018
     Nonfat dry milk, human    161,726     117,221    118,395          -26.8          1
     4/ For dry products, shipments of bulk goods.
     Published by:
     Dairy Market News - Madison, WI
     ISRAEL WEBER, 608-422-8601
     Email: israel.weber@ams.usda.gov
     DANIEL JOHNSON, 608.422.8605
     Email: daniel.johnson@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