MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI. October 21, 2015 (Report 42)

CENTRAL BUTTER 

Butter production is active as retail demand is picking up. Food 
service demand is steady. The price fluctuation at the CME Group, Inc. 
is not affecting demand, some sources indicate. Most manufacturers 
strongly dislike the volatility and are keeping low inventory levels. 
Some bulk butter is clearing into the Midwest from the Western region. 
Cream is more available than it has been in the past several weeks. 
Butter producers in the Midwest are also buying cream from the Western 
region. Most processors are using in-house or contracted cream and are 
buying very little on the spot market. Sources indicate retail butter 
inventories are in check with where companies want them, while bulk 
butter inventories are high at some plants. Bulk butter prices range 
from 4 cents under to 7 cents over the market, based on CME Group 
prices and various indices. The DMN National Retail Report-Dairy for 
October 16-22, noted the national weighted average advertised price 
for a 1 pound package of butter is $3.25, up $0.16 from a week ago, 
but down $0.95 from a year ago. The weighted average advertised price 
in the Midwest is $2.92. The CME Group Grade AA butter market closed 
at $2.4200. This is up 7 cents from last Wednesday. 

Dairy Market News Reporting Changes Proposal
Dairy Market News (DMN) is proposing updating the Dairy Market News 
Working Guidelines. This proposal is the result of an industry comment 
period. The updates would allow DMN market reports to additionally 
include information and sales prices reported by individuals and firms 
functioning as marketing agents selling on the behalf of dairy product 
manufacturers. The Working Guidelines updates are intended to capture 
more information on pricing and market conditions and reflect the 
evolution of the marketing of dairy products. Currently, market 
pricing information is collected for first sale, f.o.b. producers' 
plants or warehouses. The changes would be effective starting with 
Report 1, January 2016.

Comment by October 30, 2015 to: DMN@ams.usda.gov  
Link to current DMN working guidelines: 
http://www.ams.usda.gov/market-news/individual-dairy-market-news-
commodity-reports

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