MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  January 15, 2015 (REPORT 2)                        

NONFAT DRY MILK - WEST                                           

Western low/medium heat nonfat dry milk prices are sharply 
lower.  Spot pricing is being traded at lower prices and 
additional offerings are being made at lower prices to stimulate 
buying interest.  Index basing points have changed for most 
market participants in 2015, with most interest for the CME 
Group and limited use of the DPMRP.  Contacts are hoping to 
avoid market price circularity.  The market tone continues to 
trend weaker.  Demand is uneven.  Some buyers are looking to 
claim product at current prices, while others are skeptical of 
the market.  Production is active as milk supplies build in the 
region.  Stocks are indicated to be building.  The CME weekly 
average last week was $.9975, down $.0025 from the prior week.  

Western high heat prices are lower to sharply lower as reflected 
in basing point changes and spot overages in 2015. In addition, 
the impact of declining low heat prices is noted.  High heat 
production continued to move downward, as dryer space is needed 
for throughput.  Spot interest is limited; contract interest is 
light.  

F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:    .9500 - 1.1600   MOSTLY:   .9500 - 1.0700    
HIGH HEAT:          1.0375 - 1.2300                              

U.S. NDM Exports, H.S. Code 0402100000(FAS)
                 2014 Exports      % Change From 
                 (Million Lb.)       1 Year Ago

November Total       93.9           - 7

TOTAL, JAN - NOV   1,128.4            + 0.2

 1 Mexico            411.6            + 12 
 2 Philippines       151.3            + 27
 3 China             101.3            - 16
 4 Indonesia          93.6            - 20
 5 Vietnam            74.3            - 2


1100CT Butch.speth@ams.usda.gov and Janet.Linder@ams.usda.gov 608.278.4152
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: www.ams.usda.gov/dairymarketnews
Dairy Market News database portal: www.marketnews.usda.gov/mnp/da-home