MD_DA650 DA MD DA650 Nonfat Dry Milk - Central and East MADISON, WI. August 06, 2015 (REPORT 31) NONFAT DRY MILK - CENTRAL AND EAST CENTRAL: Prices for Central low/medium heat nonfat dry milk are unchanged to lower as the market seeks support. Sellers report interest is steady for contract loads, which are shipping on schedule. However, interest in f.o.b. spot offers is light. Buyers indicate they have offers from manufacturers, brokers, and resellers to choose among, and the offers appear consistently from week to week. At this time, few buyers are ready to take positions for balance for the year low/medium heat NDM needs. Despite the lackluster current interest, a few end users and manufacturers are discussing contracting. Interest from end users for multi-year agreements is emerging. Low/medium heat nonfat dry milk production is active, but a few producers are looking for ways to bypass the dryers with some intake volumes. Interest in condensed skim is steady to lower from Class II end users, but higher from Class III buyers. With fewer loads of milk available at under Class prices, some cheese manufacturers are bringing in condensed skim to maintain cheese production schedules. Inventories of low/medium heat NDM are mixed, ranging from comfortable to above that needed for near-term contract fulfillment. High heat NDM prices are unchanged to lower. Interest is light to moderate, with buyers shopping price. Manufacturers report inventories are limited, and recent milk intakes have hampered scheduling high NDM production. The CME Group monthly average price for Grade A NDM during July was $0.7622, compared to $1.7166 a year ago. The July monthly average of the range price series for Central and East high heat was $1.0375 compared to $1.9495 a year ago. The NASS Dairy Products report noted U.S. human NDM production during June in the Central region totaled 25.8 million pounds, 3.3% higher than one year ago. The Central region accounted for 16% of the total U.S. production. Dairy Products: The NASS Dairy Products report noted U.S. human NDM production during June was 164.4 million pounds, 10.6% higher than last year. Total U.S. human NDM month ending stocks for June was 262.3 million pounds, 15.2% above a year ago. During January - June 2015, U.S. human NDM production totals 1.02 billion pounds, 11.3% more than the same time span in 2014. EAST: Low/medium heat nonfat dry milk prices shifted lower at the top of the range on weak F.O.B spot trading. Production is mostly steady in the region. Producers are adding to inventories at most balancing plants as condensed skim milk supplies still necessitates heavy drying. Domestic demand is weak. Many buyers are procuring small quantities around their immediate needs and using caution by not taking a decisive position in a falling market. Spot sales are light. Resale market exchanges are occurring, although limited. High heat NDM prices are steady to lower. Some manufacturers are drying additional volumes, otherwise, production is limited due to dryer priorities. Buyer interest is mixed. The July 2015 Dairy Market News monthly average for the Central/East low/medium heat nonfat dry milk range series is $0.8539 compared to $1.8326 a year ago. The Foreign Agricultural Service (FAS), reports that Jan.-June 2015 U.S. nonfat dry milk exports totaled 639.8 million pounds, a 4% decline from a year ago. DAIRY PRODUCTS: According to NASS, the Atlantic region's production of human nonfat dry milk in June 2015 totaled 30.3 million pounds, 9.7% more than a year ago but 15.4% less than the previous month. The June 2015 U.S. production of skim milk powder, totaled 34.7 million pounds, 34.6% less than a year ago and 2.4% less than the previous month. F.O.B. CENTRAL/EAST: Includes EXTRA GRADE and GRADE A LOW/MEDIUM HEAT: .7000 - .8800 MOSTLY: .7500 - .8000 HIGH HEAT: .9200 - 1.0000 U.S. NDM Exports, H.S. Code 0402100000(FAS) 2015 Exports % Change From (Million Lb.) 1 Year Ago June Total 102.8 - 23 TOTAL, JAN - JUN 639.8 - 4 1 Mexico 249.1 + 8 2 Philippines 85.8 + 1 3 Indonesia 50.2 + 2 4 Vietnam 43.3 - 20 5 China 42.0 - 33 1100CT Daniel.Johnson@ams.usda.gov & Janet.Linder@ams.usda.gov USDA/AMS/Dairy Market News, Madison, Wisconsin 608.577.7006 Dairy Market News website: http://www.ams.usda.gov/market-news/dairy Dairy Market News database portal: http://www.marketnews.usda.gov/mnp/da- home