MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  March 19, 2015 (REPORT 11)                         

NONFAT DRY MILK - WEST                                           

Western low/medium heat nonfat dry milk prices moved lover. The market 
is weak, exhibiting signs of oversupply. Producers have various 
strategies related to NDM stocks. For some, the building NDM stocks 
represent a hedge against mid-term demand. Other manufacturers 
indicate their primary goal is to keep NDM moving out of the 
warehouse. Recent sales into Mexico have lightened some inventories. 
Interest from end users is steady to higher, with some buyers 
finalizing Q3 contracts as downside risks are considered acceptable. 
Low/medium heat NDM production is active throughout the Western 
region, although some cheese operations are taking in higher volumes 
of condensed skim to fortify vats. Low/medium heat inventories are 
building. High heat NDM prices are mixed, moving lower and higher. 
Demand is reported as improving, but well within the current volumes 
in stock. Many facility managers are only adding high heat NDM onto 
the drying schedule on an as-needed basis to fill contracts. Other 
plant operators report high heat production will have to wait for a 
break in intake volumes. Inventories are light to moderate. 

F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:     .9350 - 1.1550   MOSTLY:   .9875 - 1.0800    
HIGH HEAT:          1.1050 - 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