MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  July 09, 2009 (REPORT 27)                                         

NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL:  Nonfat dry milk prices in the Central region are unchanged on a steady 
market.  NDM production is lower at several balancing plants this week as fluid 
orders have rebounded somewhat after the holiday weekend and some plants are 
noting a seasonal decline in farm milk intakes.  Sales of condensed skim into 
Class III facilities are higher as cheese plants opt to use condensed skim to 
supplement vat yields.  Manufacturer offers to the spot market of low/medium 
heat NDM are somewhat constrained as various plants anticipate needing some of 
the current NDM production for internal applications and contract fulfillment.  
Western NDM is clearing into the Central region to fill some demand at delivered 
prices below the current Central market.  The June 2009 Dairy Market News 
average of the mostly price series for Central nonfat dry milk, low/medium heat, 
was $.9014 compared to $1.4648 in June 2008.  The Central nonfat dry milk high 
heat average price for June 2009 was $.9666 compared to $1.3895 one year ago.  
DAIRY PRODUCTS:  NASS's Dairy Products report shows production of human food 
NONFAT DRY MILK during May 2009 totaled 149.1 million pounds, up 7.7% from April 
2009 production and 13.3% higher than May 2008.  May 2009 nonfat dry milk 
production in the Central region totaled 18.6 million pounds, an 8.5% increase 
over one month ago, but 14.2% lower than one year ago.  Month ending stocks, at 
189.2 million pounds, are 8.1% higher than a month ago and 43.7% higher than one 
year ago.  Production of SKIM MILK POWDERS, which includes protein standardized 
and blended product, totaled 26.7 million pounds, 8.5% higher than one month ago 
but 41.3% lower than production one year ago.  
EAST:  There was no change this week in prices for Eastern nonfat dry milk.  
Prolonged unusually cool weather has contributed to milk production in New 
England and portions of the Middle Atlantic region remaining higher than 
seasonally normal.  This has resulted in continuing heavier than normal drying 
schedules; 7 days a week in some cases in northern areas.  Nevertheless, 
production continues to primarily be utilized for contract fulfillment and 
inventory which leaves few offerings to spot markets.  The 8.2% increase in 
regional NDM production for May 2009 over April was similar to the 7.7% national 
increase.  Regional NDM production for May totaled nearly 25.7 million pounds, 
3.2% greater than one year ago.  The USDA initial allocation of nonfat dry milk 
for the Dairy Export Incentive Program (DEIP) for the 2009/10 marketing year 
which began July 1, is 48,176 MT (106.2 million pounds) of NDM.

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .8750 - .9525          MOSTLY:   .8900 - .9225               
HIGH HEAT:         .9000 - 1.0525

1100C janet.linder@usda.gov & eric.graf@usda.gov.