MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI. October 7, 2015 (Report 40)

CENTRAL BUTTER 


Lower sales volumes due to the fluctuating pricing levels have some 
manufacturers concerned. Some manufacturers are wondering how long the 
prices will remain at the current pricing levels. Buyers are careful 
in negotiating Q1 2016 contracts. Sellers report being comfortable 
with current stock levels of print butter, even as they buy bulk 
butter or microfix to fill current orders. Bulk butter prices range 
from 2 cents under to 7 cents over the market, based on CME Group 
prices and various indices. The DMN National Retail Report-Dairy for 
October 2 - 8, noted the national weighted average advertised price 
for a 1 pound package of butter is $3.32, up $0.08 from a week ago, 
but down $0.36 from a year ago. The weighted average advertised price 
in the Midwest is $3.00. The CME Group monthly average price for Grade 
AA butter during September was 2.6690, compared to $2.9740 a year ago.  
The NASS Dairy Products report noted August U.S. butter production 
totaled 128.6 million pounds, down 1.2% from a year ago. January-
August cumulative U.S. production totals 1.238 billion pounds, 1.7% 
behind 2014 during the same time span. August production in the 
Central region totaled 50.2 million pounds, 7.0% lower than last year. 
The Central region accounted for 39% of U.S. production in August. The 
CME Group Grade AA butter market closed at $2.3700. This is down 14 
cents from last Wednesday. 



1530CT Tara.Herbst@ams.usda.gov 608.557.7007
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