MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  February 19, 2015 (REPORT 7)                                      


NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Nonfat dry milk prices are up.  The market tone is 
strengthening.  Supplies are strong and stocks are building due to 
seasonally higher milk production. Some end users are disappointed that 
they did not buy when the market was lower and now are reluctant to buy. 
The futures market is higher so some manufacturers are looking for prices 
above the current market.  Demand is increasing. Production continues to 
be steady.  HIGH HEAT prices have increased.  Sales are slow.  Most 
producers are not making high heat right now.  Some buyers are looking to 
buy starting in March. Wednesday at the CME Group, Grade A NDM closed at 
$1.2000, up $.0750 from last Wednesday.   
EAST:  Prices for nonfat dry milk are trending higher throughout all 
pricing series.  Condensed skim supplies are readily available, with 
limited volumes clearing beyond contractual commitments.  Consequently, 
low/medium nonfat dry milk production schedules are very active at most 
plants.  Producers' offerings are presented but buyers with passable 
inventory are refraining from making additional purchases, as prices move 
above expected levels.  In general, end-user demand remains relatively 
weak as broker procurements, outside of contracts, represent the majority 
of sales.  Some market participants are pondering current price direction 
in relation to inventory growth and level of global demand.  The market, 
while unsettled, is firming.  High heat nonfat production while light, 
follows made to order or irregular manufacturing schedules.  Offerings 
are limited in the spot market.  High heat nonfat is being supported by 
the low/medium heat nonfat dry milk prices.  The market undertone 
continues to firm.  

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:  1.0500 - 1.2000         MOSTLY:  1.0700 - 1.1300              
HIGH HEAT:        1.1500 - 1.2700                                               

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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