MD_DA350                                                    
DA                                                          
MD DA350 Dry Buttermilk - Central and East                  

MADISON, WI.  September 04, 2008 (REPORT 36)                

DRY BUTTERMILK - CENTRAL AND EAST                           
                                                            
CENTRAL:  Central dry buttermilk prices are lower on a weak market.  
Butter production is fairly active in some Central region plants as 
increased fluid milk use related to supplying the school pipeline has 
led to higher volumes of cream generation and corresponding increases in 
butter churning.  Sale of condensed buttermilk is the first choice for 
several plants, but several Class II condensed buttermilk buyers are 
seasonally ratcheting down production.  That issue is leading to higher 
dry buttermilk production at some balancing plants.  Spot interest in 
dry buttermilk is at low ebb according to several industry contacts, and 
even offers below the current range are slow to spark buyer interest.  
Inventories are comfortable at some plants, steady to building at 
others.  The August 2008 monthly average price for Central/East dry 
buttermilk was $1.2045 compared to $1.9974 in August 2007.
EAST:  The range of Eastern dry buttermilk prices continued the weekly 
decline that began in the second week of July.  This reflects the 
continuing weakness in Eastern dry buttermilk markets, where there is 
little reported spot interest.   Cream prices moved lower last week and 
remained lower this week, prompting some increased interest in churning.  
With schools in much of the Southeast back in session, and much of the 
rest of the region including New York beginning this week, cream from 
standardized milk is increasingly available in higher volumes.  If cream 
prices remain lower and cream is available, with little buyer spot 
interest at current prices, industry observers expect increased 
inventories. 

F.O.B. CENTRAL/EAST:    1.0500 - 1.2675                     

1100C janet.linder@usda.gov & eric.graf@usda.gov