MD_DA650 DA MD DA650 Nonfat Dry Milk - Central and East MADISON, WI. July 09, 2015 (REPORT 27) NONFAT DRY MILK - CENTRAL AND EAST CENTRAL: Nonfat dry milk prices were mixed this week. Finding agreeable spot pricing levels continues to be a challenge for buyers and sellers. Producers believe that NDM is undervalued while buyers believe prices should be lower. Low/medium heat production remains active as some manufacturers are making NDM instead of other dry products. Some cheese producers have started using more NDM. High heat prices remain unchanged with few spot sales. Most producers are only selling contracted product. Manufacturing is sporadic as producers are using drying time to make other products. The June DMN monthly average of the mostly price series for Central and East low/medium heat NDM was $0.9414, compared to $1.8170 a year ago. The June monthly average of the range price series for Central and East high heat was $1.1097 compared to $1.9384 a year ago. The CME Group monthly average price for Grade A NDM for June was $0.8734, compared to $1.8349 a year ago. The NASS Dairy Products Report noted U.S. human NDM production during May was 178.2 million pounds, 9.9% higher than last year. Total U.S. month ending stocks for May were 261.0 million pounds, 18.0% above a year ago. January - May, U.S. human NDM production totals 855.8 million pounds, 11.1% more than the same time span in 2014. The NASS Dairy Products Report noted production during May in the Central region totaled 28.1 million pounds, 5.4% lower than a year ago. EAST: Low/medium heat nonfat dry milk prices inched lower at the top of the mostly series, with downward moving spot prices. Production rates over the past holiday period were higher for NDM manufacturers due to multiple channels for condensed skim shutting down. Current production is adding to growing NDM inventories. Demand is fair under contracts. Cash trading is very light, as buyers are content with shopping for the lowest possible prices. Export demand remains light. High heat nonfat dry milk prices are unchanged. Buyers that are fairly interested are having a hard time finding high heat. A few manufacturers are carrying out limited high heat production, around heavy low/medium heat drying schedules, as a mean to satisfy near-term orders. Some producers with inventory on-hand are sold out through Q3. Spot market transactions are scarce due to light inventories. The Foreign Agricultural Service (FAS), reports that May 2015 U.S. nonfat dry milk exports totaled 133.6 million pounds, unchanged from a year ago. DAIRY PRODUCTS: According to NASS, the Atlantic region's production of human nonfat dry milk in May 2015 totaled 34.6 million pounds, 19.0% more than a year ago and 4.3% more than the previous month. The May 2015 U.S. production of skim milk powder, totaled 36.7 million pounds, 38.3% less than a year ago, but 6.2% more than the previous month. F.O.B. CENTRAL/EAST: Includes EXTRA GRADE and GRADE A LOW/MEDIUM HEAT: .8200 - .9650 MOSTLY: .9000 - .9500 HIGH HEAT: .9950 - 1.1800 U.S. NDM Exports, H.S. Code 0402100000(FAS) 2015 Exports % Change From (Million Lb.) 1 Year Ago May Total 133.6 --- TOTAL, JAN - MAY 537.0 + 1 1 Mexico 211.8 + 21 2 Philippines 68.2 - 4 3 Indonesia 44.7 + 3 4 China 37.3 - 30 5 Vietnam 32.2 - 19 1100CT Daniel.Johnson@ams.usda.gov & Tara.Herbst@ams.usda.gov USDA/AMS/Dairy Market News, Madison, Wisconsin 608.577.7006 Dairy Market News website: www.ams.usda.gov/dairymarketnews Dairy Market News database portal: http://www.marketnews.usda.gov/mnp/da- home