MD_DA350                                                    
DA                                                          
MD DA350 Dry Buttermilk (Central and East)                  

MADISON, WI.  August 06, 2015 (REPORT 31)                   


DRY BUTTERMILK - CENTRAL AND EAST                           

CENTRAL: Central dry buttermilk prices are lower on an unsettled market. On 
the supply side, producers indicate production is limited as cream continues 
to clear to Class II and III manufacturers. Dry buttermilk manufacturers 
also report sales of condensed buttermilk are removing buttermilk solids 
from drying schedules. Inventories are light to moderate, and some producers 
are actively scouting for dry buttermilk loads to fulfill near term 
contracts. However, according to end users and brokers, dry buttermilk 
prices need to be more in line with nonfat dry milk pricing to cement deals. 
The DMN monthly average of the range price series for Central and East dry 
buttermilk during July was $.8430, compared to $1.7463 a year ago. 

Dairy Products: The NASS Dairy Products report noted U.S. dry buttermilk 
production during June totaled 7.0 million pounds, 15.9% lower than a year 
ago. Total U.S. dry buttermilk month ending stocks for June were 23.1 
million pounds, 24.6% above last year.
                                                           
EAST: Dry buttermilk prices are lower due to F.O.B spot sales adjustments.
Production rates are steady to slightly lower as some butter churn operators 
continue to sell additional volumes of cream. Some brokers anticipate dry 
buttermilk prices will continue to weaken. Purchase transactions occur on an 
as-needed basis, centered on bargaining shopping.  Inventories are adequate 
for contractual obligations. The market undertone is mixed.

F.O.B. CENTRAL/EAST:    .7000 - .8900

1100CT Daniel.Johnson@ams.usda.gov & Janet.Linder@ams.usda.gov 
USDA/AMS/Dairy Market News, Madison, Wisconsin
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