MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI. September 23, 2015 (Report 38)

CENTRAL BUTTER 

Central region churning activity is steady to lower as butterfat 
components in milk intakes trend lower. Spot cream load availability 
for butter production is tight as active aerated cream, sour cream, 
cream cheese, and moderate ice cream/frozen dessert manufacturing draw 
heavily on regional cream supplies. Manufacturers in the region are 
looking for bulk butter to fill needs through the balance of the year; 
however, buyers report there is a scarcity of bulk butter loads 
available. Producers are microfixing in addition to running bulk and 
print butter lines to keep pace with order fulfillment. Bulk butter 
prices are 2 cents under to 5 cents over the market, based on CME 
Group prices and various indices. The DMN National Retail Report-Dairy 
for September 18-24 noted the national weighted average advertised 
price for a 1 pound package of butter is $3.40, up 43 cents from a 
week ago, but down $0.02 from a year ago. The weighted average 
advertised price in the Midwest is $3.28. The NASS Cold Storage report 
noted U.S. butter stocks on August 31 were 209.3 million pounds, 18% 
lower than last month, but 21% higher than a year ago. The butter 
market maintained very strong pricing through midweek at the CME 
Group, and Grade AA butter closed at $3.0250, up 40 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