MD_DA350                                                    
DA                                                          
MD DA350 Dry Buttermilk (Central and East)                  

MADISON, WI.  May 19, 2016 (REPORT 20)                      


DRY BUTTERMILK - CENTRAL AND EAST                           
                                                            
CENTRAL: Dry buttermilk production is steady this week in reaction to 
active butter making. The low end of the price range moved up this week, 
as industry contacts report less spot load interest. However, there is a 
plentiful supply of buttermilk on the market, bringing down the top end 
of the price series. Sales are reportedly mixed. Some manufacturers 
report little interest outside of contracts while others are seeing 
increases in sales. Industry participants speculate that a large portion 
of buttermilk sales is going to international buyers. Buttermilk moving 
into ice cream is still slow in the Central region. Manufacturers are 
anticipating a strong increase in demand as warmer weather approaches. 
Inventories are mixed.
EAST: East dry buttermilk prices are mixed based on f.o.b. spot sales 
activity. With plenty of cream available and active churning, condensed 
buttermilk dryer schedules remain active to process solids off the 
butter stream. Sales of dry buttermilk into some ice cream facilities 
are improving, with warmer temperatures prompting buyer interest. Some 
buyers maintain a "wait and see" attitude, wanting a clearer picture of 
the market prior to making additional purchases. Eastern dry buttermilk 
supplies are steady to incrementally higher. As such, most manufacturers 
remain comfortable with current inventory levels. An emphasis of some 
plant managers is to maintain inventory levels that can meet late summer 
contract needs. The market undertone is unsettled.

F.O.B. CENTRAL/EAST:    .7000 - .7700                       

1100CT daniel.johnson@ams.usda.gov/Amy.L.Schmitz@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