MD_DA650 Nonfat Dry Milk - Eastern and Central U.S. Report 17 - Released on April 25, 2019 CENTRAL: Another bullish week on the nonfat dry milk spot market, in both low/medium and high heat varieties, has led to higher prices across the board. Traders, brokers and end users have become less hesitant to take on loads, as some are planning to hold onto stocks, expecting stronger markets to come in the near future. Producers have begun to shift dryer time from whole milk and buttermilk production to nonfat dry milk drying. Midwest supply, however, has yet to catch up to strengthening demand. Mexican buying has also increased, which is historically a boon to the overall market. High heat nonfat dry milk trading was fairly slow in the region, on tight supplies and a majority of trading occurring via contracts. Nonfat dry milk market tones are distinctly bullish. EAST: Low/medium heat nonfat dry milk (NDM) prices in the East region are stronger in both the range and the mostly series. The current market tone is cautiously bullish, as sources cite the international climate's impact on current domestic prices. In assessing limited downside risk, some regional brokers/traders are bidding on bulk purchases. In chorus, global contraction on milk production inspires some producers to suggest lengthy NDM contracts. Some buyers have contracted into 2020. In general, sellers are more resistant to discounting offers. NDM output is steady at a fairly comfortable levels for manufacturers. Although milk production improves, seasonally, plants appear to operate short of full, for now. Low/medium heat NDM interest from global markets is good, expressly Mexico. Market prices for high heat nonfat dry milk parallels the stronger price movement of low/medium heat NDM. Spot availability is light to tight, with most trades prompted under contractual agreements. Demand is fair with seasonal fluctuations noted. Inventories are light. 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: .9900 - 1.0600 Mostly Range - Low & Medium Heat; $/LB: 1.0000 - 1.0300 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: 1.0875 - 1.1800 Information for the period April 22 - 26, 2019, issued weekly Secondary Sourced Information: Wednesday at the CME Group Grade A NDM closed at $1.0200, up from last week's weekly average price of $0.9925. Dairy Products Report ± Nonfat Dry Milk, Human Summary Released April 3, 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: February 2018 and 2019 Monthly Production (1000 pound Percent Change from February January February February January Region 2018 2019 2019 2018 2019 United States 157,833 172,690 153,715 -2.6 -11.0 Atlantic 26,949 27,010 27,506 2.1 1.8 Pennsylvania 14,551 14,255 14,119 -3.0 -1.0 Central 29,547 35,989 30,418 2.9 -15.5 West 101,337 109,691 95,791 -5.5 -12.7 California 54,644 65,802 61,538 12.6 -6.5 Other States 1/ 88,638 92,633 78,058 -11.9 -15.7 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 - February Cumulative Production Percent Change (1000 pounds) from Report Month 2018 2019 2018 February 318,134 326,405 2.6 Manufacturers' stocks end-of-month 3/ End of month stocks (1000 pounds) Percent Change from February January February February January Product 2018 2019 2019 2018 2019 Nonfat Dry Milk, Human 298,413 286,374 308,934 3.5 7.9 3/ Stocks held by manufacturers at all points and in transit. Manufacturers' shipments 4/ End of month stocks (1000 pounds) Percent Change from February January February February January Product 2018 2019 2019 2018 2019 Nonfat dry milk, human 146,587 154,575 125,686 -14.3 -18.7 4/ For dry products, shipments of bulk goods. Published by: Dairy Market News - Madison, WI DANIEL JOHNSON, 608-422-8605 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/