MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI. October 28, 2015 (Report 43)

CENTRAL BUTTER 

Churn operators report butter production is steady to higher, with 
active demand coming from the retail sector for conventional and 
specialty butter. Grocery store managers in some areas are running 
specials on unsalted butter in 1 pound packages. Buyers report cream 
loads are available on the spot market from several cheese 
manufacturers in the region, along with some weekend offers from 
bottlers. Butter manufacturers are trying to keep inventories on the 
tight side as there is an expectation of lower Grade AA prices by the 
end of Q4, but they are enjoying the current brisk pace of sales of 
bulk and consumer packaged butter. 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 23-
29, noted the national weighted average advertised price for a 1 pound 
package of butter is $3.35, up $0.10 from a week ago, but down $0.85 
from a year ago. The weighted average advertised price in the Midwest 
is $2.99. The CME Group Grade AA butter market closed Wednesday at 
$2.64. This is up 22 cents from last Wednesday.  The NASS Cold Storage 
report noted U.S. butter stocks on September 30 were 187.5 million 
pounds, 23% higher than one year ago, but 12% below the previous 
month. 

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 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