MD_DA640                                                         
DA                                                               
MD DA640 Nonfat Dry Milk - West                                  

MADISON, WI.  February 09, 2012 (REPORT 6)                       

NONFAT DRY MILK - WEST                                           

Prices for Western low/medium heat nonfat dry milk are lower for 
the mostly range.  The market test is light to moderate.  The 
market tone is unsettled and weaker.  Market indicators are 
trending weaker for indices, spot pricing, and export markets.  
Buyer interest has slowed as some buyers contemplate needs 
against pricing expectations.  Offering volumes have increased 
and are available from most sources.  Production of NDM is 
seasonally heavy and above projected levels at most plants in 
the region.  The milk supply is higher and milk needs supplied 
to other products have been lower than expectations.  Western 
high heat prices are unchanged in a light test.  Buying interest 
beyond contracted volumes is limited as buyers assess their 
requirements.  Drying schedules are being squeezed in the 
interest of plant throughput that favors low heat production.  
Overall, high heat NDM stock positions are moderate.  

F.O.B. WEST:  Includes EXTRA GRADE and GRADE A                   
LOW/MEDIUM HEAT:    1.2800 - 1.4100   MOSTLY:   1.3200 - 1.3750  
HIGH HEAT:          1.4000 - 1.5100                              

1100CT Butch.Speth@ams.usda.gov 608.278.4152