MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI.  May 20, 2015 (Report 20)

CENTRAL BUTTER

Most butter producers are at full capacity. Demand is still strong. 
Some contacts suggest that this is because bakeries and other end 
users are going back to using butter instead of other fat sources. 
Inventories are low and some manufacturers are content with that as 
they are selling this week what they anticipate they will make next 
week in order to keep butter moving. With the gap in domestic and 
international prices, butter imports are increasing. The drop in 
recent pricing at the CME Group has some manufacturers more at ease. 
Cream is available. Current cream supply is enough for butter as well 
as ice cream demand. Bulk butter prices remain at market to 6 cents 
over the market, based on the CME Group and various indices. According 
to the DMN National Retail Report- Dairy, for May 15-21, the national 
weighted average advertised price for a 1 pound package of butter 
price is $2.89, a 20 cent decrease from last week but 17 cents higher 
than a year ago. The Grade AA butter price at the CME Group closed 
Wednesday at $1.9300, a 13 cent decrease from last Wednesday's close. 

               2015 U.S. Butter Imports (USDA-FAS)
                  (Million Lb.)       % Change From   % of 
                                      1 Year Ago      Yearly Quota
Apr. Quota Imports   2.4              +  78              16 
Jan. - Apr.  
High Tier            2.4              +2145              N.A. 
Quota Imports        8.4              +  70              55



1500CT Tara.Herbst@ams.usda.gov 608-557-7007 
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