MD_DA431 DA MD DA431 BUTTER - CENTRAL MADISON, WI. July 8, 2015 (Report 27) CENTRAL BUTTER Sales to retailers have started to increase for some manufacturers. Cream supplies are tightening as processors start up again after the holiday weekend. Fluid milk spot prices are starting to rise and have some manufacturers declining spot sales because the dry buttermilk market is weak. Some butter makers in the region are buying cream from the Western region. Spot sales on bulk butter were active this week. Some butter manufacturers are comfortable at current pricing levels. According to the DMN National Retail Report- Dairy, for July 3-9, the national weighted average advertised price for a 1 pound package of butter price is $3.04, a 38 cent decrease from last week and 47 cents lower than a year ago. The weighted average price in the Midwest was $2.82, with a range of $2.49-2.89. Bulk butter prices are at 6 cents under market to 5 cents over the market, based on the CME Group and various indices. The CME Group monthly average price for Grade AA butter during June was $1.9065, compared to $2.2630 a year ago. The NASS Dairy Products report noted May U.S. butter production totaled 169.5 million pounds, up 1.9% from a year ago. January-May cumulative U.S. production totals 833.8 million pounds, 2.0% behind 2014 during the same time span. The Grade AA butter price at the CME Group closed Wednesday at $1.9200, decreasing 1 cent from last Wednesday. 2015 U.S. Butter and Milkfat Exports (USDA-FAS) (Million Lb.) % Change From 1 Year Ago May 3.5 - 71 Total Jan. - May 26.0 - 74 1 Saudi Arabia 9.1 - 63 2 Mexico 6.5 + 48 3 Canada 2.0 - 28 4 South Korea 1.9 - 18 5 Iran 1.2 - 83 1530CT 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