MD_DA650

     Nonfat Dry Milk - Eastern and Central U.S.

     Report 45 - Released on November 07, 2019

     Central: Low/medium heat nonfat dry milk (NDM) prices continued to show strength, increasing
     in all facets. Industry contacts point to Mexican demand, tighter supplies, and seasonal
     production shifts (buttermilk powder and whole milk powder) as factors in the resolute
     bullishness of recent NDM markets. Trading was relatively active, as seasonal demand trends
     are bearing fruit for NDM manufacturers in the region. Powder markets are generally bullish,
     with the exception of the whey complex. That said, even WPC 34% is steady, as some end users
     reported attempting to shift from NDM to WPC 34% and having little to no luck finding
     quantities in their price range. NDM supplies are generally balanced. One note of detraction
     from some contacts is that holiday ordering is nearing, or past, its peak and some slowdowns
     are expected. In week 45, however, no such slowdown occurred and current market tones are
     resolute. High-heat NDM prices mirrored those of low and medium heat varieties and shifted
     higher. Trading was seasonally active on high-heat markets, both in the Central and Eastern
     regions.

     EAST: Low/medium heat nonfat dry milk (NDM) prices are moving higher in the f.o.b. spot
     market. Prices for both the range and mostly series reflect active yearend demand. The
     region's production rates are not seeing much change from the previous week as a few NDM
     dryer plants log downtime for maintenance projects. Spot buyers of NDM noted that low/medium
     heat NDM is rather scarce when it comes to their near-term needs. Hence, there is little
     chance for discounted pricing in the interim, as processors lock up orders for Q1 2020.
     Pricing for high heat nonfat dry milk adjusted to good seasonal demand, with increases
     through the range. Inventory levels are adequate for committed customers' needs and cash
     market purchases. The NDM market has a bullish undercurrent.

     DMN MONTHLY AVERAGE
     The DMN monthly average of the mostly price series for Central and East low/medium heat NDM
     during October was $1.1380, compared to $1.0590 in September.
     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:                 1.1300 - 1.2100
     Mostly Range - Low & Medium Heat; $/LB:                1.1600 - 1.1900


     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:                         1.2200 - 1.3000

     Information for the period November 4 - 8, 2019, issued weekly

     Secondary Sourced Information:

     CME GROUP DAILY TRADING
     Wednesday, at the CME Group, Grade A NDM closed $1.2050, up from $1.1650 a week ago.

     CME MONTHLY AVERAGE
     The CME Group monthly average price for Grade A NDM during October was $1.1579, compared to
     $1.0703 the previous month.

     DAIRY PRODUCTS
     Dairy Products Report – Nonfat Dry Milk, Human Summary
     Released November 5, 2019, 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: Sept 2018 and 2019
                           Monthly Production (1000 pound     Percent Change from
                                Sept    August      Sept         Sept    August
     Region                     2018      2019      2019         2018      2019
     United States           114,030   133,720   123,000          7.9      -8.0

     Atlantic                 21,003    29,629    26,393         25.7     -10.9
        Pennsylvania           9,585    13,838    12,720         32.7      -8.1

     Central                  18,504    31,268    24,265         31.1     -22.4
     West                     74,523    72,823    72,342         -2.9      -0.7
        California            38,440    36,464    39,078          1.7       7.2

     Other States 1/          66,005    83,418    71,202          7.9     -14.6
     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 - September
                          Cumulative Production  Percent Change
                              (1000 pounds)          from
     Report Month               2018      2019       2018
     Sept                  1,374,999 1,406,956        2.3

                                       Manufacturers' stocks end-of-month 3/
                           End of month stocks (1000 pounds)   Percent Change from
                                Sept    August      Sept         Sept    August
     Product                    2018      2019      2019         2018      2019
     Nonfat Dry Milk, Human  261,646   269,728   254,059         -2.9      -5.8
     3/ Stocks held by manufacturers at all points and in transit.

                                         Manufacturers' shipments 4/
                           End of month stocks (1000 pounds)  Percent Change from
                                Sept    August      Sept         Sept    August
     Product                    2018      2019      2019         2018      2019
     Nonfat dry milk, human  117,002   142,769   121,929          4.2     -14.6
     4/ For dry products, shipments of bulk goods.

     Published by:
     Dairy Market News - Madison, WI
     ISRAEL WEBER, 608-422-8601
     Email: israel.weber@usda.gov
     DANIEL J JOHNSON
     Email: daniel.johnson4@usda.gov

     Additional Dairy Market News Information:
     Dairy Market News (DMN) by Phone: (608)422-8602
     DMN Website: https://www.ams.usda.gov/market-news/dairy
     DMN MARS (My Market News): https://mymarketnews.ams.usda.gov