MD_DA431 DA MD DA431 BUTTER - CENTRAL MADISON, WI. December 16, 2015 (Report 50) CENTRAL BUTTER Butter production in the Central region is steady to higher as cream demand from Class II operations is declining. Ice cream and cultured goods plant operators indicate the last of holiday related orders are on their way to stores now, and some production lines will be down for maintenance projects. Churn operators expect the next few weeks will bring additional cream into their facilities. Although butter production right now is generally destined for storage, some butter makers indicate the recent sharp decline in prices has made those increases in holdings more palatable than if prices were closer to $2.90 per pound. Butter demand is light from the retail sector and generally steady from food service. The DMN National Retail Report- Dairy for December 11-17 noted the national weighted average advertised price for a 1 pound package of butter was $3.19, down $0.10 from one week ago and $0.13 lower than a year ago. The weighted average prices in the Midwest and South Central regions, respectively, are $2.99 and $3.05. The CME Group Grade AA butter market closed Wednesday at $2.0775. This is down 71.25 cents from last Wednesday. Bulk butter prices range from 4 cents under to 7 cents over the market, based on CME Group prices and various indices. 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