MD_DA350                                                    
DA                                                          
MD DA350 Dry Buttermilk (Central and East)                  

MADISON, WI.  March 09, 2017 (REPORT 10)                    

DRY BUTTERMILK - CENTRAL AND EAST                           
                                                            
CENTRAL: Central region dry buttermilk prices are steady. The dry 
buttermilk spot market was quiet. Dry buttermilk demand 
continues upward as the spring holidays get closer. However, some contacts 
expect demand to peak soon, as some end users of dry buttermilk can opt for 
less costly low/medium heat NDM. Dry buttermilk production is limited as 
low/medium heat NDM is still taking the lion's share of dryer time. With 
limited production, inventories remain slightly tight. The market tone is 
fair. 
DAIRY PRODUCTS:  According to NASS, U.S. production of dry buttermilk 
during January 2017 totaled 11.8 million pounds, 3.3% up from a year ago 
and 7.3% more than the previous month. Month ending stocks were 22.3 
million pounds, up 4.0% from last year, but down 2.3% from last month. 
EAST: This week, prices for buttermilk powder are unchanged. As plants 
with limited drying capacity prioritize processing of heavy condensed 
skim volumes, dry buttermilk production is mostly irregular, as output 
generally meets contracted customer needs. Hence, producers offering 
spot loads are limited, as they opt to reserve product. On the buyer 
side, market participants who typically purchase dry buttermilk are 
drawn to NDM, due to the cost advantage. Some marketers suggest this may 
temporarily increase the supply of dry buttermilk. However, there is 
anticipation of an imminent decline in prices as dry buttermilk prices 
align with NDM. As well, increased seasonal interest from ice cream is 
expected to stabilize inventory growth. The market undertone is steady 
to unsettled. The February 2017 Dairy Market News monthly average for 
the Central and East dry buttermilk series is $0.9742 compared to 
$0.7974 a year ago. 
 

F.O.B. CENTRAL/EAST:    .8800 - 1.0500                                                                                 
                                                                                                         
1100CT daniel.johnson@ams.usda.gov 608.422.8605  
Israel.weber@ams.usda.gov 608.422.8601
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-
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