MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  May 07, 2015 (REPORT 18)                           

NONFAT DRY MILK - WEST                                           

Prices on both Western low/medium heat nonfat dry milk series are 
lower and higher on a mixed market. Brokers and end users seem to be 
viewing the potential upside risk for NDM pricing as more significant 
than the downside reward. That realization has brought a few more 
buyers into the market, but price is still part of the equation in 
putting purchasing deals together. NDM production is ongoing 
throughout the west, but cheese manufacturing continues to siphon off 
some milk volumes in a few multi-end product operations. Low/medium 
heat NDM inventories are generally higher than needed or expected at 
this point in the year. High heat nonfat dry milk prices are lower and 
higher, narrowing the range. Sales are steady into regular customers. 
Production is irregular, with a few plants scheduling high heat dryer 
times around upcoming contract fulfillment needs. According to NASS, 
in March 2015, California produced 76.3 million pounds of NDM, about 
41.8% of the national monthly production.  NDM production in the West 
region totaled 123.1 million pounds, 4.8% more than one year ago.  
This is about 67.5% of total March production in the U.S. The April 
2015 Dairy Market News average of the mostly price series for Western 
low/medium heat nonfat dry milk was $0.9660 compared to $2.0172 one 
year ago.  The average for Western high heat nonfat dry milk was 
$1.1334 compared to $2.1763 one year ago.  

DAIRY PRODUCTS:  NASS reports U.S. production of human food NONFAT DRY 
MILK during March 2015 totaled 182.4 million pounds, an 8.7% increase 
from one year ago.  Month ending stocks, at 254.5 million pounds, are 
17.8% higher than one year ago. March 2015 production of SKIM MILK 
POWDERS, which includes protein standardized and blended product, 
totaled 37.2 million pounds, 14.1% lower than one year ago. 

F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:     .8800 - 1.0200   MOSTLY:   .9200 - .9800     
HIGH HEAT:          1.0400 - 1.1900                              

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