MD_DA350                                                    
DA                                                          
MD DA350 Dry Buttermilk (Central and East)                  

MADISON, WI.  August 11, 2016 (REPORT 32)                   

DRY BUTTERMILK - CENTRAL AND EAST                           
                                                            
CENTRAL: Dry buttermilk prices are higher on the low end of the price 
series but hold steady on the top end. Demand for condensed buttermilk 
is strong from ice cream and frozen dessert manufacturers as milk 
production declines in the region. Therefore, some dry buttermilk 
manufacturers are not filling dryers with buttermilk but moving loads as 
condensed instead. However, demand for dry buttermilk is also strong. 
Slowdowns in production and active demand has tightened dry buttermilk 
inventories across the Central region. Several manufacturers report 
having no spot load availability. The market undertone is firming. The 
NASS Dairy Products report noted U.S. dry buttermilk production during 
June 2016 totaled 8.1 million pounds, 22.6 percent higher than a year 
ago. Total U.S. dry buttermilk month-ending stocks for June were 21.4 
million pounds, 1.2 percent below last year. 
EAST: Dry buttermilk prices are steady to higher as regional f.o.b. spot 
transactions moved prices notably at the bottom of the range. Production 
of dry buttermilk is lighter, as some butter processors paused churning 
schedules, as cream supplies weakened. In addition, increased interest 
in condensed buttermilk hinders potential dry buttermilk output volumes. 
Dry buttermilk inventories are sufficient, although varying based on 
individual producer availability. Spot sales are somewhat light this 
week. The dry buttermilk market tone is unsettled, as some market 
indicators point to slight firming.  
DAIRY PRODUCTS:  According to NASS, U.S. production of dry buttermilk 
during June 2016 totaled 8.1 million pounds, 22.6% more than a year ago, 
but 7.6% less than the previous month. Month ending stocks were 21.4 
million pounds, down 1.2% from last year and 11.2% from last month.

F.O.B. CENTRAL/EAST:    .7800 - .8600                       

1100CT daneil.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