MD_DA350                                                    
DA                                                          
MD DA350 Dry Buttermilk (Central and East)                  

MADISON, WI.  July 28, 2016 (REPORT 30)                     


DRY BUTTERMILK - CENTRAL AND EAST                           
                                                            
CENTRAL: Dry buttermilk prices eased slightly this week. Production in 
the Central region is mixed. Several butter manufacturers report 
scattered production based on contractual needs. Some industry contacts 
feel that domestic market participants are currently more interested in 
condensed buttermilk than dry buttermilk. Therefore, some manufacturers 
are choosing to schedule fewer dry buttermilk runs. However, 
international interest is still present and several manufacturers 
continue to produce beyond contractual needs in order to have spot load 
availability. Ice cream and frozen dessert manufacturers continue to run 
full schedules and are purchasing dry buttermilk to meet production 
needs. Inventories are mixed. Some manufacturers report either being 
sold out or having very tight inventories while other industry contacts 
report comfortable stock levels. The market undertone is mixed.
EAST: Dry buttermilk prices in the East are lower on both ends of the 
range on f.o.b. spot sales, in a fairly quiet market. Churning rates are 
lower for some butter manufacturers as limited cream supplies fulfill 
contracted commitments. Lower butterfat levels and the declining milk 
supply are also reducing the supply of available cream for churning. The 
butter market is realizing competitive cream demand from ice cream and 
usage from other cream based dairy production. Manufacturers' buttermilk 
inventories are moderate, while building in some instances. Interest in 
f.o.b. spot loads of dry buttermilk is light as some buyers expect near 
term prices to trend lower. The undertone of the dry buttermilk market 
appears unsettled.

F.O.B. CENTRAL/EAST:    .7400 - .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