MD_DA350                                                    
DA                                                          
MD DA350 Dry Buttermilk (Central and East)                  

MADISON, WI.  July 14, 2016 (REPORT 28)                     


DRY BUTTERMILK - CENTRAL AND EAST                           
                                                            
CENTRAL: Dry buttermilk prices in the Central region are unchanged this 
week. Production is mixed. Cream is more readily available in the 
Central region than manufacturers had anticipated for this point in the 
year, therefore some butter manufacturers continue to run full 
schedules. However, producers with a larger supply of buttermilk than 
they had anticipated are choosing to move some as condensed buttermilk 
instead of drying. Demand is steady to lighter this week with minimal 
spot activity. A few industry contacts report receiving offers for dry 
buttermilk, but do not feel pressed to make a sale. Inventories are 
mixed. Some manufacturers report no spot load availability and are 
producing just to meet contractual obligations. Other market 
participants are managing large inventories of dry buttermilk. The 
market undertone is steady.  
EAST: Prices for East dry buttermilk are steady. Production runs vary 
amongst processors, as the emphasis of dryer operations continues to 
center on managing condensed skim volumes. In clearing up dryer time, 
fairly active trading of condensed buttermilk is taking place as 
increasing activity in ice cream manufacturing pulls heavily on 
condensed buttermilk. Hence, the level of dry buttermilk holdings of 
Eastern processors are somewhat nebulous, but stocks are usually on hand 
to satisfy immediate and near-term customer needs. Market sources note 
inventories are building in some areas. This week, interest is steady on 
fairly light trading, as a few market participants pause momentarily 
while attending a dairy industry conference. In the meanwhile, 
buyers/sellers are curious whether the NDM price, which some see as 
fundamentally unsound, drives a higher than rational dry buttermilk 
price.

F.O.B. CENTRAL/EAST:    .7500 - .8600                       

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