MD_DA350                                                    
DA                                                          
MD DA350 Dry Buttermilk (Central and East)                  

MADISON, WI.  July 07, 2016 (REPORT 27)                     

DRY BUTTERMILK - CENTRAL AND EAST                           
                                                            
CENTRAL: Dry buttermilk prices in the Central region are higher 
this week. Production is mixed. Several manufacturers report no 
room for buttermilk on dryer schedules and are selling their 
buttermilk as condensed instead. Some dry buttermilk producers are 
scheduling just enough runs to fill contractual needs. With some 
inventories already being light, several market participants 
speculate the market will continue to firm. However, a few 
industry contacts believe there are inventories in the Midwest 
with considerable dry buttermilk stocks. A handful of market 
participants are getting calls from sellers looking to move loads 
of dry buttermilk. Demand from ice cream and frozen dessert 
manufacturers continues to be strong. Overall buyer interest is 
steady this week. The market undertone is firming. 

EAST: Dry buttermilk prices are higher on light trading. The 
market undertone is firmer. Current NDM and butterfat values are 
helping to lift dry buttermilk prices. Demands from bakers and ice 
cream makers are improving. Production is ongoing as moderate to 
heavy cream loads continue clearing into butter churning. 
Inventories are steady to slightly higher. The DMN monthly average 
of the range price series for Central and East dry buttermilk 
during June was $0.7618, compared to $0.8868 a year ago. 
DAIRY PRODUCTS:  According to NASS, U.S. production of dry 
buttermilk during May 2016 totaled 8.8 million pounds, 0.5% more 
than a year ago but 8.6% less than the previous month. Month 
ending stocks were 24.1 million pounds, 1.7% more than a year ago, 
but down 2.3% from the previous month.

F.O.B. CENTRAL/EAST:    .7500 - .8600                       
                
1100CT Angel.Teran@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