MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI. January 27, 2016 (Report 4)

The Central butter market is steady to firm, although market 
participants find it difficult to reconcile the current prices and 
stocks on hand. Manufacturers indicate most orders for spring holiday 
coverage are two to three weeks out, but a few orders were placed in 
the last few days. Retail interest is steady and some recent features 
pushed end of the month sales on 1 pound packages. The DMN National 
Dairy Retail Report-Dairy for January 22-28 noted the national 
weighted average advertised price for a 1 pound package of butter was 
$3.20, down $0.37 from one week and $0.12 from one year ago. The 
weighted average prices in the Midwest and South Central regions, 
respectively, are $1.99 and $3.26. At most plants in the Central 
region, butter production is active. Cream supply contracts are light 
to moderate for Class II usage as manufacturers finish sour cream and 
dip orders for Super Bowl-related shopping. Ice cream and ice cream 
mix production are steady, but manufacturers indicate the orders for 
summer-related sports activities have not started. Cream is available 
in the Central region, and butter plant managers also report they are 
receiving spot cream loads from outside the region. Although current 
demand is light to moderate, churners are actually looking 6-9 months 
ahead as far as building inventories before the heavy Class II cream 
usage months. Bulk butter is clearing into storage. The NASS Cold 
Storage report noted U.S. butter stocks on December 31 were 152.9 
million pounds, 15% higher than last month and 46% higher a year ago. 
Bulk butter prices are steady, ranging from 4 cents under to 7 cents 
over the market, based on CME Group prices and various indices. The 
CME Group Grade AA butter market closed Wednesday at $2.2000, up 6.750 
cents from last Wednesday.

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