MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI.  January 7, 2015 (Report 1)

CENTRAL BUTTER
	
Butter production is exceeding incoming orders, resulting in 
inventories to moderately grow. Given the current cream prices and 
availability, many manufacturers are processing internal cream 
supplies and looking to obtain cream in the spot market. Most print 
butter production is being done through churning. Demand for bulk 
butter is reduced as prices range from market to 6 cents over the 
market, with various time frames and averages used. Export orders are 
light, while imports continue to come in the U.S. On Wednesday at the 
CME Group, Grade AA butter closed at $1.5400, down $0.0150 from last 
Wednesday. The CME Group monthly average price for Grade AA butter 
during December was $1.7633, compared to $1.5963 a year ago. The NASS 
Dairy Products report noted November U.S. butter production totaled 
135.5 million pounds, down 5.7% from last month and 4.7% lower than a 
year ago. January-November cumulative U.S. production totals 1.657 
billion pounds, 2.5% behind 2013 during the same time span. November 
production in the Central region totaled 54.7 million pounds, 10.6% 
lower than a month ago and 2.6% below last year. The Central region 
accounted for 40% of U.S. production in November. January-November 
Central production totals 649.6 million pounds, 1.7% behind the same 
time span in 2013.


1500CT Ryan.Studnicka@ams.usda.gov 608-278-4155 
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: www.ams.usda.gov/dairymarketnews
Dairy Market News database portal: http://www.marketnews.usda.gov/mnp/da-home