MD_DA350                                                    
DA                                                          
MD DA350 Dry Buttermilk (Central and East)                  

MADISON, WI.  May 26, 2016 (REPORT 21)                      


DRY BUTTERMILK - CENTRAL AND EAST                           
                                                            
CENTRAL: Dry buttermilk production remains active in a quiet market. 
There is plentiful buttermilk available on the spot market with reports 
of some off specification buttermilk powder available as well. Some 
manufacturers report reducing pricing out of necessity to alleviate 
inventory pressures. Buyers continue to honor their contracts. However, 
few manufacturers report buyers seeking additional loads outside of 
contracts. They speculate this is due to large amounts of buttermilk 
stocks in the Central region. Inventories are building. Ice cream makers 
have mild interest in buttermilk powder. Some industry participants 
speculate demand from ice cream and frozen dessert manufacturers will 
pick up after the holiday weekend. Overall, the market undertone is 
weak. 
EAST: Prices for dry buttermilk in the East region are mixed, as f.o.b. 
spot sales extend the price range. Activity is somewhat quiet this week 
with minimal cash trading taking place. Manufacturers look to ramp up 
dry buttermilk production over the holiday period, as butter making 
surges behind added milk supply. Dry buttermilk stocks are moderate and 
building. Demand is light to fair. Offers are being made as processors 
look for willing buyers, as they hope to reduce inventory levels. The 
dry buttermilk market has a weak undertone.  

F.O.B. CENTRAL/EAST:    .6500 - .7750                       

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