MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  March 05, 2015 (REPORT 9)                          

NONFAT DRY MILK - WEST                                           

Western low/medium heat nonfat dry milk prices are lower on an unsettled 
market. Buyers are limiting interest to present use and buying on an as 
needed basis. FOB offers to the market, outside of contracts, are 
moderate, with some manufacturers regularly pushing volumes for clearance 
while others recognize inventories are building, but they are not ready to 
drop prices to make sales. Low/medium heat NDM production is ongoing, with 
manufacturing milk volumes available for processing generally increasing 
on a week to week basis. Western high heat nonfat dry milk prices are 
unchanged to lower on limited activity. Buyers report high heat nonfat is 
available from several outlets in the Western region, making price a 
deciding factor between offers. Inventories are light to moderate. 
Production is intermittent. According to NASS, in January 2015, California 
produced 63.8 million pounds of NDM, about 38.5% of the national monthly 
production and 17.3% more than one year ago.  NDM production in the West 
region totaled 110.4 million pounds, 13.7% more than one year ago.  This 
is about 66.6% of total January production in the U.S.  The February 2015 
Dairy Market News average of the mostly price series for Western 
low/medium heat nonfat dry milk was $1.0475 compared to $2.0725 one year 
ago.  The average for Western high heat nonfat dry milk was $1.1355 
compared to $2.1232 one year ago.  

DAIRY PRODUCTS:  NASS reports U.S. production of human food NONFAT DRY 
MILK during January 2015 totaled 165.8 million pounds, a 19.4% 
increase from one year ago.  Month ending stocks, at 239.8 million 
pounds, are 60.8% higher than one year ago.  January 2015 production 
of SKIM MILK POWDERS, which includes protein standardized and blended 
product, totaled 41.2 million pounds, 30.0% lower than one year ago. 

F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:    .9700 - 1.1550   MOSTLY:   1.0400 - 1.1200   
HIGH HEAT:         1.1000 - 1.2250                              


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