MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  February 19, 2015 (REPORT 7)                       

NONFAT DRY MILK - WEST                                           

Prices for Western low/medium heat nonfat dry milk are higher following 
changes in index bases. Buyers expressed some concerns about the sizeable 
weekly increases on contract prices taking place now, especially in light 
of the current active production trends. Contacts offered some insightful 
comments on the recent weeks of price movement, theorizing that the dearth 
of Western NDM low/medium heat FOB offers could be overcome if/as prices 
moved higher. Sales at the CME Group totaled 98 during the last two weeks, 
during which time the Grade A NDM price rose 8 cents. This week, prices 
have gained 5 cents through Wednesday's trading on light trading. Milk 
production is heading higher in most areas in the Western region and 
increasing volumes are clearing into NDM at most locations, however, some 
plant operators are diverting milk volumes to cheese production.  High 
heat nonfat dry milk prices are higher. Interest is steady into contract 
accounts but light for FOB spot offers. Sales are generally in one to two 
load quantities. Production is limited. 

F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:    1.0200 - 1.2000   MOSTLY:   1.0500 - 1.1200  
HIGH HEAT:          1.0900 - 1.2500                              
                                                                        
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