MD_DA650 DA MD DA650 Nonfat Dry Milk - Central and East MADISON, WI. September 10, 2015 (REPORT 36) NONFAT DRY MILK - CENTRAL AND EAST CENTRAL: Prices for Central low/medium heat nonfat dry milk shifted higher across the range and mostly price series, following the trend of various indices. Sales are limited from some manufacturers by light uncommitted holdings. A few producers indicate they are sold out until the beginning of October. Producers also indicate they continue to meet commitments on contracted volumes. Low/medium heat NDM production is ongoing, with noticeably lower throughput as farm milk intakes decline. High heat nonfat dry milk prices in the Central region are steady. Interest is on the rise as baking accounts ramp up production on seasonal items. High heat NDM production is steady to marginally higher as manufacturers shift additional milk volumes into that end product to meet upcoming contractual demand. The CME Group monthly average price for Grade A NDM during August was $0.7329, compared to $1.4365 a year ago. The DMN monthly average of the mostly price series for Central and East low/medium heat NDM during August was $0.7643, compared to $1.6873 a year ago. The August monthly average of the range price series for Central and East high heat was $0.9643 compared to $1.8633 a year ago. The NASS Dairy Products report noted U.S. human NDM production during July in the Central region totaled 23.2 million pounds, 4.7% lower than one year ago. The Central region accounted for 15% of the total U.S. production. Total U.S. human NDM production during July was 155.1 million pounds, 6.9% lower than last year. Total U.S. NDM human month ending stocks for July was 269.7 million pounds, 8.5% above a year ago. During January - July 2015, U.S. human NDM production totals 1.18 billion pounds, 8.5% more than the same time span in 2014. According to FAS, January-July U.S. NDM exports totaled 729.2 million pounds, a decrease of 6% compared to the same time span in 2014. EAST: Eastern low/medium heat nonfat dry milk prices are higher as the market strengthens. Sources note that aggressive buying on the CME is likely influencing what market participants are willing to pay. Some market participants expect sustained price strength, and others expect weakness. Both prospective sellers and buyers feel confident in their positions. The market undertone remains unsettled. Nonfat dry milk production increased through the extended holiday weekend into midweek. Some manufacturers plan to suspend production schedules to carry out maintenance obligations. Most inventories are adequate for customer accounts and building moderately. Producers note that low/medium heat NDM sale volumes are picking up with fair to good domestic demand. As well, some global interest is noted. Sources suggest that f.o.b. spot offerings seem to be slowing as the market goes up. Prices for high heat nonfat dry milk moved higher at the bottom of the range. Spot market activity is sporadic. Buying interest from baking customers is growing. The August 2015 Dairy Market News monthly average for the Central/East low/medium heat nonfat dry milk range price series is $0.7817 compared to $1.6270 a year ago. The Foreign Agricultural Service (FAS), reports the July 2015 U.S. nonfat dry milk exports totaled 89.4 million pounds, a 22% drop from a year ago. DAIRY PRODUCTS: According to NASS, U.S. production of human food nonfat dry milk during July 2015 totaled 155.1 million pounds, 6.9% lower than a year ago and 6.0% below the previous month. Month ending stocks, at 269.7 million pounds are 8.5% higher than a year ago. Cumulative U.S. YTD nonfat dry milk production through July totaled 1.178 billion pounds, 8.5% more than 2014 during the same time span. The Atlantic region production of nonfat dry milk totaled 31.0 million pounds, 8.7% more than a year ago and 2.3% above last month. The July 2015 U.S. production of skim milk powder totaled 35.1 million pounds, 23.0% more than a year ago. Cumulative U.S. YTD skim milk powder production through July totals 255.4 million pounds, a 22.9% decline from 2014. F.O.B. CENTRAL/EAST: Includes EXTRA GRADE and GRADE A LOW/MEDIUM HEAT: .7800 - .9000 MOSTLY: .8000 - .8500 HIGH HEAT: .9000 - 1.0500 U.S. NDM Exports, H.S. Code 0402100000(FAS) 2015 Exports % Change From (Million Lb.) 1 Year Ago July Total 89.4 - 22 TOTAL, JAN - JULY 729.2 - 6 1 Mexico 293.6 + 10 2 Philippines 93.6 - 5 3 Indonesia 54.6 - 10 4 China 45.8 - 36 5 Vietnam 45.5 - 32 1100CT Daniel.Johnson@ams.usda.gov & Janet.Linder@ams.usda.gov USDA/AMS/Dairy Market News, Madison, Wisconsin (608)557.7006 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