MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  May 21, 2015 (REPORT 20)                                          


NONFAT DRY MILK - CENTRAL AND EAST                                              

CENTRAL:  Nonfat dry milk prices for low/medium heat were mostly 
steady this week. Production remains active as manufacturers are 
choosing to make NDM over other dry products. Inventory levels are 
high. There have been reports of end users wanting larger volumes of 
product at current pricing levels. End users are reporting that the 
CME Group based pricing is the most desirable right now. High heat 
prices were also steady to lower. Production is lower as 
manufacturers are using dryers to make other dry products. 
EAST:  Low heat nonfat dry milk prices are lower for the mostly 
series.  Regional drying operations are handling heavier condensed 
skim volumes, leading to increased production of low heat nonfat dry 
milk.  With increases in production, inventories are growing 
steadily.  Buyers are continuing to defer purchases around their 
immediate needs, in anticipation of a softer market as milk supplies 
increase.  High heat nonfat dry milk prices moved lower at the top of 
the range.  Supplies are noted as tight as low heat drying schedules 
constrain high heat nonfat dry milk production.  Some manufacturers 
are comfortable with current inventory levels, and are expected to 
limit high heat production as those volumes satisfy contractual 
obligations into Q3.  Although in limited proportion, high heat is 
trading in the spot market.  Buyers expect offers will become harder 
to find as milk production closes in on the peak.  The market 
undertone is steady.  

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .9100 - 1.0200         MOSTLY:   .9300 - .9900               
HIGH HEAT:        1.0500 - 1.2000                                                

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