MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  February 05, 2015 (REPORT 5)                                      

NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Prices are advancing.  The market tone is unsettled. The trade 
indicates world SMP pricing is lending support to the market increases.  
Some contacts believe that the bottom of the market is still to come. 
Buying has been quiet this week. NDM supplies are tight to available.  
HIGH HEAT sales are slow.  Some producers are not producing right now, 
but are taking orders for when production resumes.  Wednesday at the CME 
Group, Grade A NDM closed at $1.0550, up $0.0200 from last Wednesday.                                                                                   
EAST:  Eastern prices for low/medium nonfat dry milk are higher.  The 
market undertone is unsettled as prices continue to fluctuate.  The 
region's low/ medium heat nonfat dry milk production is heavy, due to 
milk supply volumes.  Demand is sporadic.  Sales are expected to be 
somewhat sluggish until spring.  Nonfat dry milk is being used as a 
substitute for other dairy ingredients.  Prices for high heat nonfat dry 
milk are mixed this week.  Supplies are light, as some producers wait to 
see what the market does.   The January 2015 Dairy Market News monthly 
average for the Central/East low/medium heat nonfat dry milk mostly 
series is $1.0358 compared to $2.0795 a year ago.
DAIRY PRODUCTS:  According to NASS, U.S. production of human food nonfat 
dry milk during December 2014 totaled 163.1 million pounds, 29.9% higher 
than a year ago.  The Atlantic region production of nonfat dry milk 
totaled 29.8 million pounds, 52.1% more than a year ago.  Cumulative 2014 
nonfat dry milk production totaled 1.761 billion pounds, 19.2% more than 
2013.  December 2014 month ending U.S. stocks, at 247.4 million pounds 
are 85.6% higher than a year ago.  The December 2014 U.S. production of 
skim milk powder, totaled 43.2 million pounds, 25.7% less than a year 
ago.  

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .9000 - 1.1000         MOSTLY:   .9725 - 1.0525              
HIGH HEAT:        1.0800 - 1.1800                                                

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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