Nonfat Dry Milk - Central and East
MD_DA650

     Nonfat Dry Milk - Eastern and Central U.S.

     Report 32 - Released on August 06, 2020

     CENTRAL: Low/medium heat nonfat dry milk (NDM) prices slipped on the mostly series and the
     top of the price range. Condensed skim is, and has been, more available in recent
     weeks/months. End users say offers of NDM have increased. Some buyers are opting for whey
     protein concentrate 34%, which has become more available at below $.80 regionally and
     nationwide. Contacts suggest Mexican buyers are stepping back, as well. High heat NDM prices
     slipped, after a big gain on the top end last week. Some contacts expect the higher prices
     on high heat NDM to begin to mirror low/medium heat NDM. In general, NDM markets are mostly
     bearish.
     EAST: Low/medium heat nonfat dry milk (NDM) prices are steady on the bottom of the price
     range, however prices are lower on the top of the range and both sides of the mostly series.
     It is the start to August and Hurricane Isaias swept into parts of the East and disrupted
     transportation routes and caused power outages. Some traders� storage outlets were shut down
     due to the hurricane. Now, there are fewer reports of transportation and power outage
     issues. NDM spot trading activities are lighter, but with lower prices some buyers
     potentially will purchase on the spot market. Class I operations are receiving most
     available milk loads right now. Low/medium heat NDM production schedules are lower, as milk
     is moving to other parts of the region(s). There are reports inventory levels are lighter
     and some manufacturers are not able to offer any additional loads. High heat nonfat dry milk
     prices are down compared to last week. A few operations are scheduling drying time for
     spot/contract requests. Inventories are fairly tight outside of committed orders.

     The DMN monthly average price of the range series for the Central and East low/medium heat
     NDM during July 2020 was $1.0203, compared to $1.0094 the previous month.

     The July 2020 monthly average price of the range series for Central and East high heat NDM
     was $1.1509 compared to $1.1207 the previous month.

     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:                 .9500 - 1.0200
     Mostly Range - Low & Medium Heat; $/LB:                .9800 - 1.0000


     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:                         1.0500 - 1.2100

     Information for the period August 3 - 7, 2020, issued weekly

     Secondary Sourced Information:

     The CME Group monthly average price for Grade A NDM during July was $1.0038, compared to
     $1.0092 in June.

     Dairy Products Report � Nonfat Dry Milk, Human Summary
     Released August 4, 2020, 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: June 2019 and 2020
                            Monthly Production (1000 pound    Percent Change from
                                June       May      June          June      May
     Region                     2019      2020      2020          2019     2020
     United States           157,948   158,591   146,689          -7.1     -7.5

     Atlantic                 34,879    31,373    29,514         -15.4     -5.9
        Pennsylvania          16,344    16,434    13,996         -14.4    -14.8

     Central                  33,458    34,077    37,545          12.2     10.2

     West                     89,611    93,141    79,630         -11.1    -14.5
     California               44,623    57,791    48,147           7.9    -16.7

     Other States 1/          96,981    84,366    84,546         -12.8      0.2
     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 - June
                         Cumulative Production  Percent Change
                              (1000 pounds)          from
     Report Month               2019      2020       2019
     June                    991,898 1,008,215        1.6

                                       Manufacturers' stocks end-of-month 3/
                           End of month stocks (1000 pounds)   Percent Change from
                               June       May      June         June       May
     Product                    2019      2020      2020         2019      2020
     Nonfat dry milk, human  291,181   345,716   289,048         -0.7     -16.4
     3/ Stocks held by manufacturers at all points and in transit.

                                       Manufacturers' shipments 4/
                           End of month stocks (1000 pounds)  Percent Change from
                                June        May       June          June        May
     Product                    2019      2020      2020         2019      2020
     Nonfat dry milk, human  141,846   204,717   198,197         39.7      -3.2
     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
     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
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