MD_DA340 Buttermilk - Western U.S. Report 49 - Released on December 05, 2019 In the West, f.o.b. prices for low/medium heat nonfat dry milk (NDM) have been on the rise for the past 7 weeks, and this week is no exception. Compared to last week, prices have increased on both ends of the range and on the top of the mostly series. According to some contacts, buyers are not excited about the current price levels and feel constrained to purchase at prices above their projected costs to guarantee coverages. Low/medium heat NDM supplies vary between balanced and short. This situation is due to increasing exports to Mexico and other parts of the world. Some reports suggest that lower skim milk powder stocks in the European Union are causing several of their customers to fall back on the U.S. to meet their needs. In the domestic market, while many buyers are finishing up Q1 2020 contract negotiations, some are waiting and hoping that spot market prices will be more favorable in the coming months. Low/medium heat NDM production is ongoing. High heat NDM prices have also increased at the top of the range. Production and spot sales are limited, whereas contractual demands continue to be stable. Overall, the market tone is steady. The November 2019 Dairy Market News monthly average for the West dry buttermilk mostly series is $1.0908 compared to $0.8919 a year ago Prices for: Western U.S., All First Sales, F.O.B., Conventional, and Edible Buttermilk Price Range ; $/LB: 1.0550 - 1.1500 Mostly Range - ; $/LB: 1.0900 - 1.1200 Information for the period December 2 - 6, 2019, issued weekly Secondary Sourced Information: At the GDT Event 249 on December 3, 2019, buttermilk powder prices across all contract periods averaged $1.2909 per pound, up 1.6 percent from the last event. Dairy Products Report – Dry Buttermilk Summary Released December 4, 2019, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, United States Department of Agriculture (USDA). Dry buttermilk – United States: Oct 2018 and 2019 Monthly Production (1000 pounds) Percent Change from Oct Sept Oct Oct Sept Region 2018 2019 2019 2018 2019 United States 10,072 8,847 8,905 -11.6 0.7 Manufacturers' stocks end-of-month 3/ End of month stocks (1000 pounds) Percent Change from Oct Sept Oct Oct Sept Product 2018 2019 2019 2018 2019 Dry buttermilk, total 12,975 13,884 12,413 -4.3 -10.6 3/ Stocks held by manufacturers at all points and in transit. Published by: Dairy Market News - Madison, WI FLORENCE KONE-GONZALEZ, (608)422-8594 Email: florence.konegonzalez@usda.gov Additional Dairy Market News Information: Dairy Market News (DMN) by Phone: (608)422-8602 DMN Website: https://www.ams.usda.gov/market-news/dairy DMN MARS (My Market News): https://mymarketnews.ams.usda.gov