MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI.  August 12, 2015 (Report 32)

CENTRAL BUTTER 


Butter demand is active from food service accounts for near-term use. 
Churners also report some grocery chain operators placed early orders 
for the holiday season. The more customary timeframe for yearend 
orders is in 6 - 8 weeks, but current trends on butter stocks and 
prices have motivated a few buyers to place orders well ahead of time. 
Also, some manufacturers are buying bulk butter on the spot market in 
an effort to meet near-term commitments. Current butter production is 
active at many churns using internal cream supplies. Some 
manufacturers indicate they would like to get additional cream, but 
are hesitant to offer multiples similar to those for Class II cream. 
Thus, butter production is below capacity at most regional churns. 
Plant managers are moving some bulk butter into microfixing to help 
meet current and upcoming retail/food service demands. Cream 
availability is improving as additional milk volumes clear to 
bottling. According to the DMN National Retail Report- Dairy, for 
August 7 - 13, the national weighted average advertised price for a 1 
pound package of butter price is $2.96, a 40 cent decrease from last 
week and one year ago. The weighted average price in the Midwest was 
$2.65. 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 $2.0150, increasing 
2.5 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