MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  February 05, 2015 (REPORT 5)                       

NONFAT DRY MILK - WEST                                           

Western low/medium heat nonfat dry milk prices are lower and higher on 
the range, but higher across the mostly price series. Buyers' 
interests are focused on pricing opportunities. Sellers indicate there 
is minimal interest in contracting for near to midterm needs by 
buyers. Offers from some resellers are at competitive pricing for 
immediate needs. Other resellers indicate they are only participating 
in back-to-back transactions as they do not want to take a position at 
this time in the NDM market. Production of low/medium heat nonfat dry 
milk is active throughout the Western region as manufacturing milk 
supplies are steady to building in most areas. Inventories vary as 
some manufacturers have Q1 commitments that are consuming current 
production from week to week. Other producers report inventories are 
growing steadily and are generally higher than desired. High heat 
nonfat dry milk prices are mixed, moving lower and higher. Interest is 
light, but some FOB sales have cleared at improved prices. Production 
is infrequent at several plants as producers are scheduling runs to 
coincide with seasonally diminished contract fulfillment. According to 
NASS, in December 2014, California produced 59.8 million pounds of 
NDM, about 36.7% of the national monthly production.  NDM production 
in the West region totaled 107.1 million pounds, 24.5% more than one 
year ago.  This is about 65.7% of total December production in the 
U.S.  Cumulative Western region 2014 production totals 1.189 billion 
pounds, an 18.7% increase compared to 2013.  The January 2015 Dairy 
Market News average of the mostly price series for Western low/medium 
heat nonfat dry milk was $0.9998 compared to $2.0693 one year ago.  
The average for Western high heat nonfat dry milk was $1.1583 compared 
to $2.0874 one year ago.  

DAIRY PRODUCTS:  NASS reports U.S. production of human food NONFAT DRY 
MILK during December 2014 totaled 163.1 million pounds, a 29.9% 
increase from one year ago.  Cumulative nonfat dry milk production for 
2014 totals 1.761 billion pounds, 19.2% higher than 2013.  Month 
ending stocks, at 247.4 million pounds, are 85.6% higher than one year 
ago.  December 2014 production of SKIM MILK POWDERS, which includes 
protein standardized and blended product, totaled 43.2 million pounds, 
25.7% lower than one year ago. Cumulative 2014 skim milk powder 
production totals 535.1 million pounds, a 15.2% decrease compared to 
2013.  

F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:    .9250 - 1.0800   MOSTLY:   .9500 - 1.0250    
HIGH HEAT:          .9750 - 1.2325                               


1100CT 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