MD DA451   
DA 
MD DA451 BUTTER HIGHLIGHTS    

MADISON, WI October 6, 2017 (REPORT 40)

Cream availability in the United States is steady to relativity tight.  
Butter production is fairly active in many balancing operations. 
Supplies are comfortable to long. Industry contacts suggest a few 
manufacturers looked to liquidate excess inventory before the fall 
baking season. The demand in the domestic market is moderate to 
strong. Overall, many market participants are willing to watch where 
the prices go. International interest is steady as domestic prices are 
competitive in the global market. Spot trading activity is steady as 
manufacturers are offering butter, but traders and brokers are 
counteroffering lower prices. Bulk butter prices range from flat 
market to 8 cents over the CME average. The market undertone is steady 
with signs of uncertainty as prices have slipped, but there are 
expectations of butter prices to increase in the near future. Friday's 
CME Group cash trading saw Grade AA butter close at $2.3400, up 
$0.0250 from last Friday. 

1200CT jessica.mueller@ams.usda.gov 608.422-8589
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: http://www.ams.usda.gov/market-news/dairy   
Dairy Market News database portal: 
http://www.marketnews.usda.gov/mnp/da-home