MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  April 09, 2015 (REPORT 14)                                        


NONFAT DRY MILK - CENTRAL AND EAST                                              

CENTRAL:  Nonfat dry milk prices moved lower this week. Sales are down as 
end users are using stocks on hand. Buyers are shopping around for better 
pricing and are content going hand-to-mouth. Some buyers are buying 
higher protein products due to better pricing points. Others are buying 
off spec product to take advantage of discounted pricing. Export demand 
is starting to pick up. Inventory levels are high. The CME Group monthly 
average price for Grade A NDM during March was $1.0108, compared to 
$2.0330 a year ago. The DMN monthly average of the mostly price series 
for Central and East low/medium heat NDM during March was $1.0788, 
compared to $2.1083 a year ago. The March monthly average of the range 
price series for Central and East high heat was $1.1785, compared to 
$2.1954 a year ago. The NASS Dairy Products Report noted U.S. human NDM 
production during February was 148.1 million pounds, 5.4% higher than 
last year. Total U.S. NDM human month ending stocks for February was 
240.7 million pounds, 32.6% above a year ago. January - February, U.S. 
human NDM production totals 313.0 million pounds, 12% more than the same 
time span in 2014. February production in the Central region totaled 23.5 
million pounds, 17.1% higher than a year ago. Wednesday at the CME Group, 
Grade A NDM closed at $.9700, down $.0050 from last Wednesday.                                                                                
EAST:  Prices for low/medium nonfat dry milk decreased on lower F.O.B 
spot sales and multiple indices.  Production levels are steady to 
increasing.  Inventory levels are expanding as surplus condensed skim 
channels to low heat nonfat powder operations.  Domestic demand is fair 
with some cheesemakers using additional supplies to increase yields.  
Buyers are making NDM purchases for immediate needs, careful not to 
expand inventories as the market trends downward.  High heat nonfat 
production is variable.  High heat nonfat dry milk prices are steady to 
lower.  Manufacturers of high heat NDM are mainly running at production 
levels to fill current contracts.  Spot market availability is light, 
with a few transactions occurring this week.  Inventories are mixed.  The 
market undertone is quiet.  The March 2015 Dairy Market News monthly 
average for the Central/East low/medium heat nonfat dry milk mostly 
series is $1.0788 compared to $2.1083 a year ago.
DAIRY PRODUCTS:  According to NASS, U.S. production of human food nonfat 
dry milk during February 2015 in the Atlantic region totaled 25.1 million 
pounds, 52.8% more than a year ago.  Month ending U.S. stocks, at 240.7 
million pounds are 32.6% higher than a year ago.  U.S. production of skim 
milk powder, totaled 32.4 million pounds, 8.3% less than a year ago.  

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .9400 - 1.0800         MOSTLY:   .9800 - 1.0625              
HIGH HEAT:        1.0900 - 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: