MD_DA640 DA MD DA640 Nonfat Dry Milk - West MADISON, WI. April 09, 2015 (REPORT 14) NONFAT DRY MILK - WEST Pricing for low/medium nonfat dry milk is mixed, with higher and lower daily prices reported at the CME Group, and lower prices for other contract bases. The market tone is weak. Buyers/end users believe stocks are building seasonally, year over year production is higher, and there are few reasons to take a position on low/medium heat NDM at this time unless pricing is favorable. Production of low/medium heat NDM is active throughout the Western region. Some condensed skim clearing to cheese production is helping moderate NDM inventories at a few locations. High heat NDM prices are steady to lower. Manufacturers report interest is light outside of contracts. Production is intermittent. According to NASS, in February 2015, California produced 59.7 million pounds of NDM, about 40.3% of the national monthly production. NDM production in the West region totaled 99.5 million pounds, 4.4% less than one year ago. This is about 67.2% of total February production in the U.S. Cumulative Western region 2015 production totals 208.7 million pounds, a 3.8% increase compared to 2014. The March 2015 Dairy Market News average of the mostly price series for Western low/medium heat nonfat dry milk was $1.0420 compared to $2.0875 one year ago. The average for Western high heat nonfat dry milk was $1.1750 compared to $2.1868 one year ago. DAIRY PRODUCTS: NASS reports U.S. production of human food NONFAT DRY MILK during February 2015 totaled 148.1 million pounds, a 5.4% increase from one year ago. Cumulative nonfat dry milk production for 2015 totals 313.0 million pounds, 12.0% higher than 2014. Month ending stocks, at 240.7 million pounds, are 32.6% higher than one year ago. February 2015 production of SKIM MILK POWDERS, which includes protein standardized and blended product, totaled 32.4 million pounds, 8.3% lower than one year ago. Cumulative 2015 skim milk powder production totals 76.1 million pounds, a 19.2% decrease compared to 2014. F.O.B. WEST: Includes EXTRA GRADE and GRADE A LOW/MEDIUM HEAT: .9200 - 1.0750 MOSTLY: .9450 - 1.0150 HIGH HEAT: 1.0750 - 1.2400 U.S. NDM Exports, H.S. Code 0402100000(FAS) 2015 Exports % Change From (Million Lb.) 1 Year Ago February Total 78.5 - 2 TOTAL, JAN - FEB 155.6 - 6 1 Mexico 75.0 + 37 2 Philippines 19.4 - 23 3 China 9.8 - 25 4 Indonesia 8.6 - 49 5 Malaysia 8.0 - 32 1100CT Janet.Linder@ams.usda.gov (608)557-7003 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/portal/da