MD_DA350                                                    
DA                                                          
MD DA350 Dry Buttermilk (Central and East)                  

MADISON, WI.  January 05, 2017 (REPORT 1)                   

DRY BUTTERMILK - CENTRAL AND EAST                           
                                                            
CENTRAL: Central dry buttermilk f.o.b. spot prices are higher on a 
firmer market, in line with the NDM market. Condensed buttermilk 
volumes are becoming higher as heavy cream volumes continue 
clearing into butter churning. However, operational schedules for 
dry buttermilk production are limited as most processors are 
focusing on clearing condensed skim loads. In addition, some Class 
II manufacturers are starting to pull moderate condensed 
buttermilk volumes. Therefore, dry buttermilk inventories are 
becoming tight. Consequently, spot trading has been light 
throughout the week. EAST: Prices for Northeast dry buttermilk 
shifted higher as firmness from the nonfat and butterfat solids 
markets support component values. Active butter churning continues 
throughout the Northeast as cream availability remains plentiful. 
Dry buttermilk production trends are in line with churning 
activity, but are hampered by dryer time availability. Plant 
managers indicate their primary focus is clearing condensed skim. 
This is freeing up some condensed buttermilk volumes for clearance 
through the spot market. Buyers from Class II plants are taking 
some condensed buttermilk volumes as they ramp up ice cream/frozen 
dessert production lines for the new season. Dry buttermilk 
inventories are steady to building. The December 2016 Dairy Market 
News monthly average for the Central and East dry buttermilk 
series is $0.9115 compared to $0.8684 a year ago.


F.O.B. CENTRAL/EAST:    .9400 - 1.0200                      

1100CT angel.teran@ams.usda.gov  (608)557.7011 & 
janet.linder@ams.usda.gov  (608)557-7003
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