MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI. February 24, 2016 (Report 8)


Churning remains active throughout the Central region as cream volumes 
generated from standardizing continue to trend higher. Demand from 
Class II operations is moderate, with some expectation by butter 
manufacturers that renewed competition for cream will emerge in March. 
Butter sales into retail outlets are active as many club stores plan 
butter features ahead of the spring holidays. Bulk sales are steady, 
but many manufacturers report they are less concerned about bulk 
inventories building at this time of year. A larger concern is 
establishing stocks that will withstand Q2-Q4 demand of established 
customers. Current butter production is split between retail and bulk 
packaging. Bulk butter prices reportedly range from market to 6 cents 
over the market, with various time frames and averages used. The DMN 
National Retail Report-Dairy for February 19-25 noted the national 
weighted average advertised price for a 1 pound package of butter was 
$3.44, $0.15 higher than one week ago and $0.26 higher one year ago. 
The weighted average price in the South Central region was $2.99. The 
CME Group Grade AA butter market closed Wednesday at $2.0000, down 
$0.0425 from last Wednesday. The NASS Cold Storage report noted U.S. 
butter stocks on January 31, 2016, were 196.l million pounds, 32% 
higher than one year ago. 

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