MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI. November 4, 2015 (Report 44)

CENTRAL BUTTER 

Grade AA butter production in the Central region is active, with churn 
operators pulling spot cream loads as they can to beef up production 
runs. Spot cream availability varies, with some plant buyers reporting 
they are once again competing with Class II manufacturers to obtain 
cream loads outside of contracts. Microfixing is ongoing as current 
butter production is insufficient to meet weekly order fulfillment 
into retail and food service market sectors. Although the recent 
market at the CME Group has been volatile, manufacturers indicate 
there are incidents of buyers trying to tie shipping dates to dips in 
the market. Basically, buyers just want butter orders to show up when 
originally planned, or sooner. The NASS Dairy Products report noted 
September U.S. butter production totaled 134.0 million pounds, up 0.9% 
from a year ago. January-September cumulative U.S. production totals 
1.372 billion pounds, 1.4% behind 2014 during the same time span. 
September butter production in the Central region totaled 53.3 million 
pounds, 1.0% lower than last year. 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 30-
November 5 noted the national weighted average advertised price for a 
1 pound package of butter is $3.51, up $0.16 from a week ago, but down 
$0.31 from a year ago. The weighted average advertised price in the 
Midwest is $3.00. The CME Group Grade AA butter market closed 
Wednesday at $2.8750. This is up 23.5 cents from last Wednesday. The 
CME Group monthly average price for Grade AA butter during October was 
$2.4757, compared to $2.3184 a year ago. 

2015 U.S. Butter and Milkfat Exports (USDA-FAS)


                 2015 Exports      % Change From 
                 (Million Lb.)       1 Year Ago

September Total    1.6            - 70

TOTAL, JAN - SEP     42.0             - 70

1 Saudi Arabia      16.6             - 48
2 Mexico             7.8             + 13
3 Canada             5.0             - 3
4 South Korea        2.8             - 10
5 Iran               1.2             - 92

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