MD_DA350                                                    
DA                                                          
MD DA350 Dry Buttermilk (Central and East)                  

MADISON, WI.  November 19, 2009 (REPORT 46)                 

DRY BUTTERMILK - CENTRAL AND EAST                           

CENTRAL:  Central dry buttermilk prices are higher on a firm market.  Churning 
is active at several integrated operations that are currently favoring butter 
and powder production.  Buttermilk drying is active at those locations.  At 
other plants, favorably priced cream sales into Western accounts are drawing 
cream away from the churns and reducing dry buttermilk production.  Contract 
based condensed buttermilk sales are seasonally active, which is decreasing 
opportunities for dry buttermilk inventory enhancement.  Various manufacturers 
are pinning hopes on the 4 week stretch between holidays as their chance to 
replenish dry buttermilk stocks.  Spot loads are intermittently available.  Some 
Western dry buttermilk cleared into the Central region to fill unmet regional 
demand. 
EAST: Cream supplies remain tight as milk production is at or near its seasonal 
low point and demand for Class II is strong as manufacturers are in their busy 
holiday production schedule.  Additional supplies of cream may become available 
as ice cream plants shut down for the Thanksgiving Holiday week. Most churns are 
operating 2-3 days per week limiting the available supplies of buttermilk 
powder.  Current buttermilk powder production is utilized to fill current 
contracts or used internally.  Spot market activity is light.  A firm undertone 
remains for buttermilk powder, supported by tight supplies for NDM.  
                                                            
                                                            
F.O.B. CENTRAL/EAST:    1.3400 - 1.4000                     

11:00 rick.whipp@ams.usda.gov & janet.linder@ams.usda.gov