Nonfat Dry Milk - Central and East
MD_DA650

     Nonfat Dry Milk - Eastern and Central U.S.

     Report 39 - Released on September 24, 2020

     CENTRAL: Low/medium heat nonfat dry milk prices firmed in all facets. As is historically the
     case, Mexican spot interest has increased and given the overall market tone a shot in the
     arm. Domestic buyers are looking to fulfill end of year needs, as well. Production rates
     have declined slightly, with dryer time being dedicated to buttermilk and whole milk
     production for seasonal demand needs. Condensed skim is reportedly in balance. High heat NDM
     prices increased on both ends, as contacts continually report loads are generally made to
     order. NDM market tones are much firmer, however contacts question the longevity of the
     current bullish run.

     EAST: Low/medium heat nonfat dry milk (NDM) prices are higher with index-based contract
     increases and f.o.b. spot purchases. Overall, the NDM market is strengthening with not much
     price resistance as buyers meet their short term buying objectives. The improvement in
     demand from exporters, especially Mexico, helps to drive the strength. As well, buyers show
     a willingness to pay more for the immediate delivery of preferred NDM powder. Other buyers
     are purchasing hand-to-mouth. Some NDM operations still maintain the sold-out status from
     the initial impact of COVID-19 on supplies. Meanwhile, lower milk supplies for some plants
     are allowing more time for high heat NDM production. Seasonal demand from fall baking and
     blending mix customers is building. Hence, market prices swelled through the range this
     week, establishing a firm undertone.
     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:                 1.0200 - 1.1000
     Mostly Range - Low & Medium Heat; $/LB:                1.0300 - 1.0600


     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:                         1.1300 - 1.2000


     Information for the period September 21 - 25, 2020, issued weekly

     Secondary Sourced Information:

     CME GROUP DAILY TRADING
     At the CME Group, on Wednesday, Grade A NDM ended the day at $1.0850, compared to the
     previous week's $1.0675 close.

     Published by:
     Dairy Market News - Madison, WI
     DANIEL JOHNSON, 608-422-8605
     Email: daniel.johnson4@usda.gov
     ISRAEL WEBER, 608.422.8601
     Email: Israel.Weber@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