MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  May 14, 2015 (REPORT 19)                                          

NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Nonfat dry milk prices were mixed this week. Production is 
steady as most manufacturers are at full capacity. Spot demand is 
steady. Buyers are taking contract loads. Some sellers are reluctant 
to release product at current pricing levels. Some producers are 
unable to build inventories at current sales rates. Manufacturers are 
drying NDM in lieu of other dry products. High heat demand is steady, 
but some manufacturers are reporting that there is limited 
availability due to the amount of milk.  

EAST:  There is a divergence of opinions as to future Eastern 
low/medium nonfat dry milk price movement which is impacting current 
transactions - or whether there are transactions.  Some sellers 
report lost sales this week when they held out for prices toward the 
high end of the mostly series but buyers held firm at a willingness 
to pay only closer to the bottom of the mostly series.  Various 
market participants expect price strength, and others expect further 
weakness.  Both prospective sellers and buyers feel confident in 
their positions.  With volumes of NDM on hand, prospective buyers 
generally do not feel pressure to complete transactions on terms they 
do not like.  Sellers who hold out for higher prices do not feel much 
pressure to move product and are comfortable retaining inventories as 
they look ahead.  Eastern high heat nonfat dry milk prices declined 
at the bottom of the price range but are unchanged at the top.  
Supplies are tightening at some manufacturers but demand is uneven.  
Some buyers are feeling more pressure to close sales than others.  

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .9100 - 1.0400         MOSTLY:   .9600 - 1.0175              
HIGH HEAT:        1.0500 - 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-home