MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI. September 30, 2015 (Report 39)

CENTRAL BUTTER 

Bulk butter demand is making a comeback as buyers witness lower 
pricing on various trading platforms. With the recent declines in 
butter prices at the CME Group, butter producers are hesitant to build 
inventories much beyond volumes needed to meet booked sales. 
Microfixing continues for meeting upcoming demand. Bulk butter prices 
range from 2 cents under to 7 cents over the market, based on CME 
Group prices and various indices. Central butter manufacturers report 
cream is available. Some Western cream is clearing into the Central 
region to meet Class II/III/IV demand. The increased availability of 
cream is also a result of Central ice cream producers slowing 
production on bulk and individual serving lines as demand for those 
items declines in step with the arrival of fall. The DMN National 
Retail Report-Dairy for September 25-October 1 noted the national 
weighted average advertised price for a 1 pound package of butter is 
$3.24, down $0.16 from a week ago, and down $0.18 from a year ago. The 
weighted average advertised price in the Midwest is $2.99. The CME 
Group Grade AA butter market posted declines on each trading day this 
week, through Wednesday, closing at $2.5100. This is down 51.5 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