MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  June 04, 2015 (REPORT 22)                                         


NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: Nonfat dry milk prices are mixed this week. Buyers and 
sellers are having a difficult time agreeing on pricing. Production 
is steady. Buyers are taking commitments but there were limited spot 
sales. Manufacturers are not offering many discounts currently. 
However, the increase in milk intakes has led to discounts for 
condensed skim. Some buyers have started buying other protein sources 
to secure more favorable pricing. The NASS Dairy Products Report 
noted U.S. human NDM production during April was 181.4 million 
pounds, 13.1% higher than last year. Total U.S. NDM human month 
ending stocks for April was 248.6 million pounds, 3.7% above a year 
ago. January - April, U.S. human NDM production totals 677.1 million 
pounds, 11.4% more than the same time span in 2014. U.S. human NDM 
production during April in the Central region totaled 28.4 million 
pounds, 9.3% higher than a year ago. The DMN monthly average of the 
mostly price series for Central and East low/medium heat NDM during 
May was $0.9735, compared to $1.8715 a year ago and the average of 
the range price for high heat was $1.1494 compared to $2.0304 a year 
ago. The CME Group monthly average price for Grade A NDM during May 
was $0.9226, compared to $1.7919 a year ago
EAST:  Prices for low/medium nonfat dry milk moved lower at the top 
of the mostly due to declines in spot prices.  Low/medium nonfat dry 
milk is plentiful.  Current output is derived from seasonal heavy 
milk supplies.  Ice cream makers are taking contract loads, while 
interest aimed at fortification/standardization is active from cheese 
producers.  Spot market transactions are light to moderate, as buyers 
purchase hand-to-mouth.  High heat production is being determined by 
contractual needs.  Eastern plant stocks are tight, with most already 
committed.  Spot transactions are unlikely.  Sources suggest high 
heat nonfat may be limited through the remainder of Q3, with the 
decision of some processors to hold back production of high heat.  
The Foreign Agricultural Service (FAS), reports that April 2015 U.S. 
nonfat dry milk exports totaled 126.5 million pounds, 8% above a year 
ago.

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .9000 - 1.0300         MOSTLY:   .9300 - .9700               
HIGH HEAT:        1.0500 - 1.2500                                               
 

U.S. NDM Exports, H.S. Code 0402100000(FAS)
                 2015 Exports      % Change From 
                 (Million Lb.)       1 Year Ago

April Total         126.5            + 8

TOTAL, JAN - APR    403.4            + 2
 1 Mexico           170.8            + 41
 2 Philippines       48.4            - 14
 3 Indonesia         28.9            - 13
 4 China             24.0            - 41
 5 Pakistan          23.2            + 3,393


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