MD_DA350                                                    
DA                                                          
MD DA350 Dry Buttermilk (Central and East)                  

MADISON, WI.  October 06, 2016 (REPORT 40)                  


DRY BUTTERMILK - CENTRAL AND EAST                           
                                                            
CENTRAL: Dry buttermilk prices in the Central region are mixed in 
a sluggish market. Buyer interest is quieter this week for dry 
buttermilk. Production is moderate, as churning schedules vary in 
the region. Dry buttermilk inventories range from tight, relative 
to spot purchasing, but comfortable for filling committed customer 
orders. Opportunities to build stocks are developing as cream 
supplies rise and some butter manufacturers actively run full 
capacity to meet expected high year-end demand. The DMN monthly 
average of the range price series for Central and East dry 
buttermilk during July was $0.8569, compared to $0.8692 a year 
ago. The NASS Dairy Products report noted U.S. dry buttermilk 
production during August 2016 totaled 6.8 million pounds, 4.8 
percent higher than a year ago. Total U.S. dry buttermilk month-
ending stocks for August were 16.2 million pounds, 34.1 percent 
above last year.
EAST: Dry buttermilk spot sales reduced the price spread this 
week. F.O.B. spot prices increased at the bottom end of the range 
while moving slightly lower at the top of the range. As some 
manufacturers increase butter output, inventories listed as tight 
are expected to expand. Demand is flat to weak with potential 
buyers/end users taking a wait and see attitude as the markets 
adjust to the declining CME Group butter price. Dry buttermilk is 
moving through contracts with limited availability for the spot 
market. In general, the market has a mixed undertone.  

F.O.B. CENTRAL/EAST:    .8400 - .9000                       

1100CT Daniel.Johnso@ams.usda.gov  (608)557.7006
USDA/AMS/Dairy Market News, Madison, Wisconsin 
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