MD_DA650

     Nonfat Dry Milk - Eastern and Central U.S.

     Report 8 - Released on February 20, 2020

     CENTRAL: Low/medium heat nonfat dry milk prices shifted quite a bit lower this week on both
     the range and mostly price series. Much like another typically stable dairy commodity,
     butter, CME prices have fallen below what many contacts expected to be the basement (in the
     case of NDM: $1.20). Trading was quieter, but even with fewer prices reported, loads are
     definitely falling toward and below that $1.20 mark. All said, even with trade issues
     internationally, some contacts suggest the current bearishness is simple: there is a lot of
     milk, particularly in the West, but also in the Midwest region, of the country. Condensed
     skim is widely available and discounted, and dryers are going strong. High heat NDM prices
     slipped slightly on the top of the range, but generally held steadier than low/medium heat
     NDM prices. Overall, markets are in limbo. Some contacts suggest this is simply a lapse
     which will clear up soon, and markets will find that similar $1.20+ range in the near term.

     EAST: Low/medium heat nonfat dry milk (NDM) prices lowered on both the range and mostly
     series. Spot trades are mixed as some buyers are purchasing regular loads for their
     immediate needs. Drying time is active as milk is readily available in the region.
     Manufacturers’ inventories are stable to growing. Market conditions have weakened a bit.
     High heat NDM prices shifted lower on the top of the price range this week. Some
     manufacturers have scheduled drying time for contractual customers. Although, spot loads are
     limited in the East.

     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:                 1.1700 - 1.2700
     Mostly Range - Low & Medium Heat; $/LB:                1.2000 - 1.2400


     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:                         1.2700 - 1.3500


     Information for the period February 17 - 21, 2020, issued weekly

     Published by:
     Dairy Market News - Madison, WI
     ISRAEL WEBER, 608-422-8601
     Email: israel.weber@usda.gov
     JESSICA MUELLER, 608-422-8589
     Email: jessica.mueller@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