MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  February 12, 2015 (REPORT 6)                                      


NONFAT DRY MILK - CENTRAL AND EAST                                              

CENTRAL:  Prices are higher. The market tone is strengthening.  Supplies 
are strong and stocks are building due to extra milk production. Export 
demand has decreased.  Due to the slowdowns in the West ports, there have 
been some loads diverted to Mexico and Canada.  The CME was very active 
this week. HIGH HEAT sales are slow.  There are producers that are not 
making high heat right now.  Wednesday at the CME Group, Grade A NDM 
closed at $1.1250, up $.0700 from last Wednesday.                                                                                   
EAST:  Prices for low/medium nonfat dry milk firmed, as f.o.b. spot sales 
and sales based on price indices moved higher.  In general, uncertainty 
is indicative of the nonfat dry milk market.  Price movements and unclear 
inventory levels are bewildering for some market participants.  Low heat 
nonfat dry milk production is steady, at high output rates.  Processors' 
dryer schedules are accommodating heavy condensed skim supplies.  Still, 
surplus condensed volumes are growing for some plants, as winter storm 
conditions complicate balancing.  Manufacturers' inventories are growing.  
Demand is active, with some end-users noted as looking for product.  Spot 
market trades are light to fair.  Contracts are being fulfilled.  High 
heat nonfat dry milk prices increased as indices advanced.  Production is 
intermittent, as available condensed skim supplies necessitate increased 
low/medium heat nonfat dryer processing.  High heat interest is moderate.  
Inventories are adequate.  The market undertone is firm.    

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .9100 - 1.1500         MOSTLY:  1.0325 - 1.0700              
HIGH HEAT:        1.1050 - 1.2050                                               

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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