MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI. February 3, 2016 (Report 5)

The Central butter market is steady to mixed. While most manufacturers 
are holding prices steady, CME Group prices moved sharply lower early 
this week. Manufacturers report they are waiting for an uptick in 
spring holiday related end user orders. Retail orders are steady. Food 
service orders are unchanged to lower as many restaurants already 
placed orders to cover the upcoming weekend highlighted by the Super 
Bowl. 

Cream availability is fairly strong according to several buyers. This 
is a bit surprising as there is usually some decline in availability 
as the calendar advances. However, end users indicate they have 
decreased their multiples simply because of the strong offers of spot 
cream loads they are receiving. Market participants report cream 
availability many be related to the North Central area's comparatively 
mild winter weather and plentiful feed. These factors are augmenting 
overall farm milk production and the butterfat components in milk 
intakes. Many butter churn operations are running full. Butter 
manufacturers are still interested in building inventories ahead of 
the summer. 

The CME Group monthly average price for Grade AA butter during January 
was $2.1214, compared to $1.5714 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 DMN National Dairy Retail Report-Dairy for January 29-Feburary 4 
noted the national weighted average advertised price for a 1 pound 
package of butter was $2.92, down $0.28 from one week and $0.40 from 
one year ago. The weighted average prices in the Midwest and South 
Central regions, respectively, are $2.62 and $3.39. 

The CME Group Grade AA butter market closed Wednesday at $2.1600, down 
$.0400 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