MD_DA350                                                    
DA                                                          
MD DA350 Dry Buttermilk (Central and East)                  

MADISON, WI.  May 12, 2016 (REPORT 19)                      

DRY BUTTERMILK - CENTRAL AND EAST                           
                                                            
CENTRAL: Central dry buttermilk prices are modestly to sharply lower as 
some manufacturers sent numerous lower priced offers to the market. 
Buyer interest for these offers was active as both end users and 
resellers have been on the sidelines waiting for this type of buying 
opportunity. Ice cream manufacturers are benefitting from the ready 
availability of spot condensed buttermilk loads as some Class IV 
manufacturers focus on NDM production. Some buttermilk volumes are 
clearing through the dryers. A few manufacturers report active interest 
in pallet-size quantities as buyers prefer to limit purchases beyond 
near-term needs on this unsettled market. Inventories are lower at some 
facilities, but steady to building at others. The NASS Dairy Products 
report noted U.S. dry buttermilk production during March 2016 totaled 
9.6 million pounds, 9.6 percent higher than a year ago. Total U.S. dry 
buttermilk month-ending stocks for February were 25.4 million pounds, 
23.2 percent above last year.
EAST: Dry buttermilk prices adjusted sharply lower at the bottom of the 
range on f.o.b. spot sales as some manufacturers focused on clearing 
inventory. Seasonal heavy condensed skim maintains the bulk of dryer 
operations' available dryer time; consequently, manufacturers are 
challenged when scheduling dry buttermilk production runs. However, 
discounted condensed buttermilk clearing to ice cream production is 
helping processors reduce those supplies while circumventing the need to 
dry. Dry buttermilk inventories are adequate and building. Buyers, in 
general, typically make purchases around their immediate needs. The 
market undertone is weak.  
DAIRY PRODUCTS:  According to NASS, U.S. production of dry buttermilk 
during March 2016 totaled 9.6 million pounds, 9.6% more than a year ago 
but 11.1% less than the previous month.  Month ending stocks were 25.4 
million pounds, 23.2% more than a year ago, but 1.0% less than the 
previous month.

F.O.B. CENTRAL/EAST:    .6150 - .7900                       

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/dairyy
Dairy Market News database portal: 
http://www.marketnews.usda.gov/mnp/da-home