MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  February 12, 2015 (REPORT 6)                       

NONFAT DRY MILK - WEST                                           

Nonfat dry milk low/medium heat prices are higher as both index and 
spot load bases increased. Demand remains tempered by price, but 
buyers are engaging in the market more regularly. Market participants 
are somewhat skeptical that the supply side of the NDM low/medium heat 
market supports a rapid increase in prices. Buyers with contracts 
based on weekly average CME Group Grade A prices note the pace of 
weekly average price changes with concern. At the CME Group last week, 
54 loads sold, and the weekly average price gained about 2.5 cents. 
This week through Wednesday, prices increased by 2.5 cents, with 33 
total carload sales. Production is ongoing, and plant operators note 
increasing manufacturing milk availability. Nonfat low/medium heat 
inventories vary, with tight supplies from a few manufacturers through 
February. Other manufacturers indicate stocks are building steadily 
and prompting some additional planning on how best to handle those 
stocks. High heat prices are mixed on a lightly traded market. Buyers 
are in and out of the market on a weekly basis and buying on a just in 
time basis. Production is mainly based on fulfilling contracts, so 
manufacturers are tucking in runs of high heat NDM as needed around 
low/medium heat drying schedules. Inventories are manageable.

F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:     .9500 - 1.1300   MOSTLY:   1.0000 - 1.0500   
HIGH HEAT:          1.0075 - 1.1850                              
                                                                        
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