MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI. March 30, 2016 (Report 13)

Cream availability in the Central region is steady to higher as 
increasing milk volumes clear into bottling to meet orders from 
educational institutions reconvening after the mid semester break. 
Also, milk intakes are higher at various butter/powder plants as farm 
milk production moves toward the flush throughout the region. In 
addition, cream loads from both the East and West regions are clearing 
into Central churning operations as cream supplies in those regions 
outpace manufacturing room. Cream buyers indicate some loads are at 
flat market, which is helping convince churners to process additional 
loads. Butter churn operators are focusing on bulk production with an 
eye toward building inventories ahead of summer. Inventories are 
steady to growing. Toll churning is also ongoing, augmented by the 
ready access to spot cream volumes. Butter demand from retail outlets 
is lower as shopping for the holidays was completed last week. Food 
service interest is reported as steady. With recent research showing 
the health benefits of dairy butterfat, many restaurant account 
managers continue to offer butter as a regular menu item. The butter 
market is unsettled. Market participants expected butter prices would 
moderate after the spring holidays. However prices on the CME Group 
trading venue have yet to show a downturn. Wednesday at the CME Group, 
Grade AA butter closed at $1.9550, $.0350 higher than last Wednesday. 
The DMN National Retail Report-Dairy for March 21-25 noted the 
national weighted average advertised price for a 1 pound package of 
butter was $2.70, $0.37 below one week ago, but $0.01 above one year 
ago. The weighted average prices in the Midwest and South Central 
regions are $2.26 and $2.64, respectively. Bulk butter prices range 
from market to 6 cents over the market, with various time frames and 
averages used. 

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