MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  January 22, 2015 (REPORT 3)                                       


NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL:  The low/medium heat NDM spot market actively traded at reduced 
prices as manufacturers looked to lower on-hand inventories. The market 
tone is weak. Buyer interest is improving in large part to bigger 
discounts available. Blenders note many opportunities available for NDM 
and other interchangeable products. Export orders are marginal and noted 
to be below a year ago. Production of low/medium heat NDM remains strong 
as milk supplies are heavy. Supplies range from moderate to heavy.  HIGH 
HEAT NDM prices shifted lower on the bottom due to weaker index pricing. 
Spot load availability of high heat is light as production is limited. 
Wednesday at the CME Group, Grade A NDM closed at $0.9500, down $0.0050 
from last Wednesday.
EAST:  Eastern nonfat dry milk continues to trend lower with a drop in 
prices this week.  Production remains active although an increase in 
Class I sales has somewhat eased low/medium nonfat schedules at drying 
facilities.  The conversion to CME price basing is ongoing in some 
channels.  Consequently, spot transactions are fairly active as market 
participants are currently procuring nonfat dry milk through the cash 
market.  With the recent reports of Mexico's demand for nonfat dry milk, 
some contacts suggest annual export volumes will be comparably lower.  
Low/medium heat nonfat inventories are building overall.  The market 
undertone is soft.  High heat nonfat dry milk prices are lower to steady.  
Processors are advancing the opportunity to manufacture high heat nonfat 
as dryer time become available.  Inventories are tight.  Some buyers are 
finding high heat nonfat difficult to procure in the Eastern spot market.  
Inventories are light.  The market tone continues to weaken.

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .9000 - 1.1125         MOSTLY:   .9500 - 1.0625              
HIGH HEAT:        1.0125 - 1.2800                                               

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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