MD_DA350                                                    
DA                                                          
MD DA350 Dry Buttermilk (Central and East)                  

MADISON, WI.  February 04, 2010 (REPORT 5)                  

DRY BUTTERMILK - CENTRAL AND EAST                           
                                                            
CENTRAL:  Central dry buttermilk prices are both higher and lower on a market 
having weaker undertones.  Butter and dry buttermilk production in the region 
are steady.  Manufacturers' inventories are building incrementally.  A few 
plants indicate offers to the spot market are still being curtailed by concerns 
over meeting near term contract needs.  The January 2010 Dairy Market News 
average of the price series for Central and East dry buttermilk was $1.2933 
compared to $1.3500 one month ago and $0.6731 in January 2009.
EAST:  Eastern dry buttermilk prices fell at the bottom of the range this week. 
Buttermilk markets are being affected by weakening nonfat dry milk markets.  
Churning activity this week has been uneven in the region, due to widespread 
disruption of milk movement patterns in the Southeast resulting from storms.  
Further North, churning has been occurring, primarily to maintain order 
deliveries with little production to accumulate inventories.
DAIRY PRODUCTS:  NASS Dairy Products reports production of dry buttermilk during 
December 2009 totaled 8.7 million pounds, 31.7% more than November 2009 
production, and 39.0% more than production one year ago.  Cumulative 2009 dry 
buttermilk production totals 74.5 million pounds, 2.8% more than during 2008.  
Month ending stocks of dry buttermilk, at 10.3 million pounds, are 95.9% higher 
than one month ago and 3.4% higher than one year ago.

F.O.B. CENTRAL/EAST:    1.0600 - 1.3650                                              

11:00C eric.graf@ams.usda.gov & janet.linder@ams.usda.gov