MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI. January 6, 2016 (Report 1)

CENTRAL BUTTER 
Butter production in the Central region is active. Cream is plentiful 
and with additional milk loads clearing into bottled uses, higher 
cream volumes are spinning off of standardizing operations. Butter 
manufacturers report interest is flat to lower from retailers, but 
food service demand is steady. There is some concern that Q1 needs 
were prefilled during the period in December when prices were lower. 
Thus, new butter sales may lag in early 2016. Salted butter loads 
surplus to immediate needs are clearing into storage. The DMN National 
Retail Report-Dairy for January 1-7 noted the national weighted 
average advertised price for a 1 pound package of butter was $3.00, 
down $0.03 from one week ago and $0.06 lower than a year ago. 
The CME Group monthly average price for Grade AA butter during 
December was $2.3318, compared to $1.7633 a year ago. The NASS Dairy 
Products report noted November U.S. butter production totaled 150.8 
million pounds, up 4.4 percent from a year ago. Butter production in 
the Central region totaled 59.9 million pounds. January-November 
cumulative U.S. production totals 1.671 billion pounds, 0.9 percent 
behind 2014 during the same time span. The CME Group Grade AA butter 
market closed Wednesday at $2.0375. This is down 2.75 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.

1500CT 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