MD_DA350                                                    
DA                                                          
MD DA350 Dry Buttermilk (Central and East)                  

MADISON, WI.  November 05, 2015 (REPORT 44)                 


DRY BUTTERMILK - CENTRAL AND EAST                           

CENTRAL: In the Central region, the dry buttermilk price range narrowed on a 
mixed market. While nonfat dry milk component values have wavered recently, 
butterfat component values have strengthened. Demand for dry buttermilk is 
steady into bakery accounts, but much of that is filled via contracts. 
Outside of contracts, demand is light. Dry buttermilk production is steady, 
but below regional capacity. Some processors indicate they prefer to 
maximize plant efficiencies by selling condensed buttermilk and focus on 
clearing condensed skim. Dry buttermilk inventories are light to moderate. 
Western dry buttermilk continues to fill some needs in the Midwest. The DMN 
monthly average of the range price series for Central and East dry 
buttermilk during October was $.9138, compared to $1.2393 a year ago. The 
NASS Dairy Products report noted U.S. dry buttermilk production during 
September totaled 6.9 million pounds, 16.8% lower than a year ago. Total 
U.S. dry buttermilk month ending stocks for September were 9.9 million 
pounds, 40.9% below last year.
EAST: Prices for dry buttermilk shifted higher at the bottom of the range 
while moving lower at the top of the range. Production is mixed. Sparse 
cream availability at a few churning facilities limits output. Some 
manufacturers are managing inventories with a general focus on holiday dry 
buttermilk needs, in scheduling sporadic production runs. Inventories vary 
based on contractual commitments, and range from balanced to growing. Dry 
buttermilk spot sales are somewhat quiet. Some prospective buyers are 
content with current holdings and are not feeling pressured to increase 
buttermilk stocks. The market undertone is mixed. 

F.O.B. CENTRAL/EAST:    .8675 - .9675                     

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-
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