MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI.  August 5, 2015 (Report 31)

CENTRAL BUTTER 

Manufacturers report week to week demand for butter is active into 
retail, food service, and grocery accounts. Also, producers indicate 
they are looking forward to filling demand for the November/December 
holidays. For that reason, some producers are purchasing bulk butter 
steadily to augment current churning output. Churning is active, with 
some plants adding production hours to weekly schedules to manage both 
fresh production and bulk butter reworking and repackaging. Cream 
availability is tight, with Class II still taking cream volumes away 
from the churns. According to the DMN National Retail Report- Dairy, 
for July 31 to August 6, the national weighted average advertised 
price for a 1 pound package of butter price is $3.36, a 7 cent 
increase from last week but a 13 cent decrease from a year ago. The 
weighted average price in the Midwest was $2.79. The NASS Dairy 
Products report noted June U.S. butter production totaled 142.8 
million pounds, up 1.7% from a year ago. January-June cumulative U.S. 
production totals 977.0 million pounds, 1.4% behind 2014 during the 
same time span. June production in the Central region totaled 52.1 
million pounds, 1.9% lower than last year. The region accounted for 
36% of U.S. production in June. Bulk butter prices are at 6 cents 
under market to 2 cents over market, based on the CME Group and 
various indices. The Grade AA butter price at the CME Group closed 
Wednesday at $1.9900, increasing 8.25 cents from last Wednesday. 

1530CT Janet.Linder@ams.usda.gov 608.557.7003
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