MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  March 05, 2015 (REPORT 9)                                         


NONFAT DRY MILK - CENTRAL AND EAST                                              

CENTRAL: Central low/medium heat nonfat dry milk prices are moving down. 
Stocks in warehouses have increased over year ago levels, but some 
producers' stocks are low. Domestic demand is steady while international 
demand has increased slightly. HIGH HEAT prices are lower on the top of 
the range.  Demand is increasing as right now there are not many 
manufacturers producing high heat. The CME Group monthly average price 
for Grade A NDM during February was $1.1067, compared to $2.0329 a year 
ago. The DMN monthly average of the mostly price series for Central and 
East low/medium heat NDM during February was $1.0750, compared to $2.0914 
a year ago. The February monthly average of the range price series for 
Central and East high heat was $1.1745, compared to $2.1576 a year ago. 
According to NASS, production of human food nonfat dry milk during 
January 2015 for the Central region totaled 25.6 million pounds, 14.9% 
more than a year ago but 2.9% less than the previous month. Wednesday at 
the CME Group, Grade A NDM closed at $1.1000, even with last Wednesday.
EAST:  This week, low/medium nonfat dry milk prices reflect downward 
pressure prompted by spot sales and adjustments to pricing indices.  
Drying of low/medium is seasonally strong.  Nonfat contract transactions 
are active, but spot market sales are sporadic.  Offers are available 
from producers and the resale market.  The perspective of sellers 
suggests that some end-users are hesitating with purchasing beyond short-
term and immediate needs.  Overall, interest is light to moderate as 
buyers in general wait for viable market indications.  Inventories 
continue to build for most manufacturers.  High heat nonfat dry milk 
prices are steady to lower.  Regional supplies increased with active 
production from a few manufacturers this week.  Drying schedules are 
typically planned to address current commitments and circumvent the 
accumulation of holdings in a weak market.  The nonfat dry milk market 
undertone implies uncertainty.    
DAIRY PRODUCTS:  According to NASS, U.S. production of human food nonfat 
dry milk during January 2015 totaled 165.8 million pounds, 19.4% higher 
than a year ago.  The Atlantic region production of nonfat dry milk 
totaled 29.8 million pounds, 52.9% more than a year ago.  

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:  1.0300 - 1.1725         MOSTLY:  1.1000 - 1.1500              
HIGH HEAT:        1.1500 - 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-home