MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  February 26, 2015 (REPORT 8)                                      


NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Prices increased this week for Central region low/medium 
heat nonfat dry milk. The market tone is firm.  The CME seems to be 
leveling out, decreasing through midweek. The high prices last week 
and the decrease in price so far this week has led to an unsettled 
market and hesitation from buyers. Product was tighter last week, but 
this week reports are showing more product availability. Production 
rates are steady and some manufacturers are at full capacity. HIGH 
HEAT prices are steady. Demand is starting to increase. Buyers are 
looking to start contract negotiations. Wednesday at the CME Group, 
Grade A NDM closed at $1.1000, down $.1000 from last Wednesday.
EAST:  Nonfat dry milk prices are higher in the mostly series.  There 
is limited spot market movement.  Production is adequate to heavy as 
manufacturers clear available condensed skim volumes to drying.  Some 
buyers are reluctant to purchase low/medium nonfat dry milk due to 
current market dynamics.  Export demand is fair.  The undertone 
varies as buyers/sellers attempt to gauge price volatility.  Prices 
for high heat nonfat are steady.  Production runs are intermittent.  
High heat nonfat needs are being met through contractual agreements.  
Limited volumes are being traded in the spot market.  Some producers 
are anticipating an uptick in demand from holiday baking usage.  



F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:  1.0725 - 1.2050         MOSTLY:  1.1200 - 1.1625              
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-home