MD_DA350                                                    
DA                                                          
MD DA350 Dry Buttermilk (Central and East)                  

MADISON, WI.  January 08, 2015 (REPORT 1)                   


DRY BUTTERMILK - CENTRAL AND EAST                           

CENTRAL: Dry buttermilk prices shifted significantly lower on active spot 
trading at discounted rates. Supplies are heavily outweighing current 
demand. Production is steady to higher. Some suppliers are looking to 
increase contracted volumes of condensed buttermilk. Resellers note 
difficulty moving loads of dry buttermilk. The market tone is weak. The NASS 
Dairy Products Report noted U.S. dry buttermilk production during November 
totaled 8.7 million pounds, 0.7% lower than last month, but 6.9% more than a 
year ago. Total U.S. dry buttermilk month ending stocks for November were 
22.5 million pounds, 10.4% more than a month ago and 132.2% above last year.
EAST:  East dry buttermilk price dropped significantly due to lower f.o.b. 
spot sales.  Dry buttermilk production continues to be strong, encouraged by 
the region's active churning.  Inventories are expanding, as buyers/sellers 
negotiate 2015 contracts.  Considerations for an approved price basing index 
are delaying the establishing of contracts for some market participants.  
Supplies are filling current deliverables with limited spot movement.  The 
market undertone is unsettled.  The December 2014 Dairy Market News monthly 
average for the Central/East regions dry buttermilk range price series is 
$1.0215 compared to $1.8490 a year ago.           

F.O.B. CENTRAL/EAST:    .6800 - 1.0575                                       

1100CT Daniel.Johnson@ams.usda.gov & Ryan.Studnicka@ams.usda.gov 
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: www.ams.usda.gov/dairymarketnews
Dairy Market News database portal: http://www.marketnews.usda.gov/mnp/da-
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