MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI. September 9, 2015 (Report 36)

CENTRAL BUTTER 

Production of butter in the Central region is slowing as butterfat 
components decline alongside farm milk intake volumes. Some churn 
operators are looking for cream spot loads, but they report cream is 
clearing into Class II and III ahead of butter. Foodservice and retail 
butter interests are active, with some retailers looking for volumes 
to cover their needs through October and November. The CME Group 
monthly average price for Grade AA butter during August was 2.1542, 
compared to $2.5913 a year ago. The NASS Dairy Products report noted 
July U.S. butter production totaled 133.3 million pounds, down 3.2% 
from a year ago. January-July cumulative U.S. production totals 1.1 
billion pounds, 1.7% behind 2014 during the same time span. July 
production in the Central region totaled 52.5 million pounds, 4.7% 
lower than last year. The Central region accounted for 39% of U.S. 
production in June. The DMN National Dairy Retail Report for September 
4 - 10 noted the national weighted average advertised price for a 1 
pound package of butter was $2.95, down $0.21 from a week ago, and 
down $0.64 from a year ago. Advertised butter prices in the Midwest 
ranged from $2.50 to $2.79. The weighted average price in the Midwest 
region was $2.54, $0.55 higher than one week ago. In the South Central 
region, the average price was $2.46, $0.37 lower than one week ago. 
Bulk butter prices reported ranged from market to 7 cents over the 
market, with various time frames and averages used. Wednesday at the 
CME Group, Grade AA butter closed at $2.4725, up $0.0525 from last 
Wednesday. 

2015 U.S. Butter and Milkfat Exports (USDA-FAS)

                 2015 Exports      % Change From 
                 (Million Lb.)       1 Year Ago

July Total          5.0           - 58
TOTAL, JAN - JULY   35.1            - 72

1 Saudi Arabia      12.9            - 58
2 Mexico             7.3            + 27 
3 Canada             4.0            - 13
4 South Korea        2.6            - 8
5 Iran               1.2            - 88

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