MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  June 13, 2013 (REPORT 24)                                         

NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL:  Nonfat dry milk prices are unchanged to higher on a modestly 
firmer market.  Some market participants report buyers now recognize the 
opportunity for price retraction for Q2/Q3 is probably gone.  While 
buyers could have purchased NDM in recent weeks at a bit of a bargain, 
more interest is popping up as prices firm.  Market participants are also 
waiting for the outcome of the Algerian tender, which could send 
additional NDM/SMP out of the domestic market.  NDM production is active 
in the Central region, with some plants bordering on running at capacity.  
Condensed skim sales are clearing some nonfat solids into Class II 
operations to meet demand for limited time offerings of soft serve 
novelties.  Nonfat dry milk inventories are building, but at slightly 
lower rates than earlier in the year as farm milk components trend lower 
seasonally.  
EAST:  Prices for nonfat dry milk moved higher this week as sales based 
on various price indices moved the upper end of the range higher.  
Production continues to be at increased levels as manufacturing milk 
supplies continue to be heavy with significant volumes of condensed skim 
being channeled to dryers.  Most manufacturers are focused on low heat 
production in order to better handle their milk supplies.  Domestic 
demand and spot sales activity have declined as lower priced dry 
buttermilk and WPC 34 are drawing prospective buyers away from the nonfat 
dry milk market.  Export interest has increased significantly with almost 
daily queries to suppliers.  A few export sales have been confirmed with 
prices at the upper end of the range. Most manufacturers are very 
comfortable with their inventories.  The increased export interest and 
current inventory levels are giving the market a firm undertone. 

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:  1.6600 - 1.7575         MOSTLY:  1.6800 - 1.7300              
HIGH HEAT:        1.7500 - 1.8075                                               

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