MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  May 07, 2015 (REPORT 18)                                          

NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Nonfat dry milk prices were mixed this week. Production is steady. 
Manufacturers are choosing to produce NDM with surplus milk supplies instead 
of other products. Reports have shown that there are some end users that are 
taking a large amount of NDM. Stronger prices are being offered in attempts 
to push up the market, but there are still loads being offered at discounts 
as most end users are not accepting higher offers at this time. End users 
who have the options are using other protein sources to utilize better 
pricing points. High heat prices were steady to lower as the bottom moved 
down slightly. Some manufacturers are reporting that there are limited 
quantiles available. The CME Group monthly average price for Grade A NDM 
during April was $0.9415, compared to $1.8994 a year ago. The DMN monthly 
average of the mostly price series for Central and East low/medium heat NDM 
during April was $1.0059, compared to $2.0382 a year ago. The April monthly 
average of the range price series for Central and East high heat was 
$1.1677, compared to $2.1315 a year ago. The NASS Dairy Products Report 
noted U.S. human NDM production during March was 182.4 million pounds, 8.7% 
higher than last year. Total U.S. NDM human month ending stocks for March 
were 254.5 million pounds, 17.8% above a year ago. January - March, U.S. 
human NDM production totals 498.2 million pounds, 11.3% more than the same 
time span in 2014. March production in the Central region totaled 28.0 
million pounds, 7.8% higher than a year ago. 
EAST:  Eastern low/medium heat nonfat dry milk prices are narrowing on the 
full range, but moving lower on the mostly range.  Low/medium heat nonfat 
production continues to be strong, as the region approaches the seasonal 
peak of milk production.  The condensed skim trade is active with prices 
competitive, relative to NDM.  Supplies are ample and building steadily at 
most manufacturing plants.  Spot sales of NDM are light with a majority of 
transactions moving through contracts.  The perception of some market 
participants is the NDM market is close to bottoming.  A few manufacturers 
have decided to build inventories, rather than sell at lower prices.  High 
heat NDM remains tight as processors focus on drying low heat nonfat dry 
milk.  In most instances, high heat is available for fulfilling near-term 
contractual obligations.  The market undertone is steady.  According to the 
NASS Dairy Products Report, the Atlantic region's production of human nonfat 
dry milk in March 2015 totaled 31.3 million pounds, 28.2% more than a year 
ago and 12.5% more than the previous month.  The U.S. production of skim 
milk powder totaled 37.2 million pounds, 14.1% less than a year ago but 
14.6% more than the previous month.  Cumulative YTD skim milk powder 
production, through March 2015, totaled 1.1 billion pounds, 19.2% less than 
a year ago at this time.  

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .9200 - 1.0175         MOSTLY:   .9500 - 1.0175              
HIGH HEAT:        1.0875 - 1.2500                                               

1100CT Daniel.Johnson@ams.usda.gov & Tara.Herbst@ams.usda.gov
USDA/AMS/Dairy Market News, Madison, Wisconsin 608.577.7000
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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