MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  January 29, 2015 (REPORT 4)                                       


NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Nonfat dry milk low/medium heat prices are mixed.  The top of 
the range came down, with the bottom holding steady and the bottom of the 
mostly holding steady with the top coming down.  Some buyers want to keep 
inventories low as they wait to see what the markets will do. There was 
an increase in spot sales this week as the higher CME prices sparked some 
interest.  Some producers are at full production.  Surplus milk is going 
to all types of manufacturing.  HIGH HEAT prices are mixed.  The bottom 
is holding steady but the top decreased.  Some manufacturers are 
producing high heat even though buying interest is light.  Wednesday at 
the CME Group, Grade A NDM closed at $1.0350, up $0.0850 from last 
Wednesday.   
EAST:  Eastern prices for nonfat dry milk are steady to lower this week. 
The market undertone is unsettled.  A few buyers are looking to lock in 
current low/medium heat nonfat dry milk prices.  Production has been 
mostly steady on the strength of available condensed skim supplies.   
Condensed skim, in some instances, is actively clearing to cheese 
production in the spot market.  December milk production was reported 
higher in all the Eastern states and January's milk output is anticipated 
to be higher than January year over year volumes.  Hence, some market 
participants are bearing in mind the possible impact on nonfat dry milk 
production and prices.  Inventory levels of low/medium heat nonfat dry 
milk vary by manufacturer and are moderate to heavy.  Volume sales in the 
export market are assisting the movement of some low/medium heat nonfat 
stocks.  Spot sales are mostly intermittent.  High heat nonfat dry milk 
prices are steady to lower.  Production is sporadic while the volume of 
condensed skim clearing to dryers is prioritized to need, in lieu of 
making high heat nonfat.  Reports suggest supplies are light, but in 
balance for contractual obligation.   

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .9000 - 1.0700         MOSTLY:   .9500 - 1.0275              
HIGH HEAT:        1.0125 - 1.2500                                                                                                                        

1100CT Daniel.Johnson@ams.usda.gov & Tara.Herbst@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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