MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  January 08, 2015 (REPORT 1)                                       

NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Low/medium heat nonfat dry milk prices moved lower on active 
spot trading and new index based transactions. Some agreements shifted 
index basing points from the National Dairy Product Sales Report to 
formulas based off the CME Group NDM prices. Some buyers are delaying or 
choosing not to renew contracts, while a few noted retracted pricing on 
new agreements. The market tone is weak. Production remains strong, with 
some manufacturers running full schedules with heavy incoming milk. Buyer 
interest domestically is light to moderate as buyers are mainly bargain 
shopping. Exports orders are limited. Supplies are steady to growing. 
HIGH HEAT NDM prices are lower due to downward pressure from low/medium 
heat NDM. Demand for high heat NDM is moderate, while supply availability 
is limited due to minimal production occurring. Production is reduced 
from heavy drying schedules of low/medium heat. Wednesday at the CME 
Group, Grade A NDM closed at $1.0000, unchanged from last Wednesday. The 
CME Group monthly average price for Grade A NDM during December was 
$1.0506, compared to $2.0762 a year ago. The December monthly average of 
the range price series for Central and East high heat was $1.3527, 
compared to $2.0757 a year ago. The NASS Dairy Products Report noted U.S. 
human NDM production during November was 150.7 million pounds, up 11.5% 
from a month ago and 48.9% higher than last year. Total U.S. NDM human 
month ending stocks for November was 216.9 million pounds, 10.6% higher 
than last month and 89.7% above a year ago. January - November, U.S. 
human NDM production totals 1.597 billion pounds, 18.1% more than the 
same time span in 2013. November production in the Central region totaled 
24.1 million pounds, 4.5% more than last month and 47.0% higher than a 
year ago. The Central region accounted for 16% of the total U.S. 
production. Cumulative 2014 production in the Central region totals 259.3 
million pounds, 9.7% more than the same time span in 2013. 
EAST:  Prices for nonfat dry milk in the East moved lower through the 
range and mostly series due to f.o.b. spot activity and adjustments to 
pricing indices.  Nonfat dry milk production remains active, although 
stronger Class I demand has lowered milk intakes, marginally, at some 
drying facilities.  Low/medium heat nonfat dry milk manufacturers are 
long on stock, as outputs continue to add to available inventories.  Most 
buyers are acquisitioning low heat nonfat dry milk based on immediate 
needs, while purchases of large quantities are limited as the market 
settles.  Prices for high heat nonfat are steady to lower.  High heat 
nonfat production is intermittent, due to limited dryer availability.  
Inventory levels in the region are fairly light; however, contractual 
commitments are being met.  The December 2014 Dairy Market News monthly 
average for the Central/East regions nonfat dry milk mostly price series 
is $1.1639 compared to $2.0245 a year ago.
 
F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .9500 - 1.2575         MOSTLY:   .9900 - 1.1800              
HIGH HEAT:        1.2125 - 1.3075                                               

1100CT Daniel.Johnson@ams.usda.gov & Ryan.Studnicka@ams.usda.gov 
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: www.ams.usda.gov/dairymarketnews
Dairy Market News database portal: http://www.marketnews.usda.gov/mnp/da-
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