MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI. April 6, 2016 (Report 14)

Despite passage of the spring holidays, the butter market continues to 
record price increases. Some market participants admit puzzlement over 
the recent price strength, especially in light of domestic prices 
being above international prices and stocks on hand registering higher 
the two previous years. The pace of retail sales is slower than the 
previous month, but food service interest is steady. Sales into 
manufacturing accounts are unchanged. Cream availability is tighter in 
areas of the upper Midwest and fewer loads from the East are clearing 
into the Central region. Some churn operators indicate they were are 
not in the spot cream market. Instead, they are concentrating on 
processing internal cream supplies. Bulk butter production is steady 
to higher as more butter volumes transition toward building bulk 
inventories. Producers are content to build inventories ahead of 
Q3/Q4. Some butter volumes are clearing to food service and retail 
packaging, especially for manufacturers with store brands. Bulk butter 
prices range from market to 6 cents over the market, with various time 
frames and averages used. The DMN National Retail Report-Dairy for 
March 28-April 1 noted the national weighted average advertised price 
for a 1 pound package of butter was $2.96, $0.26 above one week ago, 
and $0.50 above one year ago. The weighted average prices in the 
Midwest and South Central regions are $2.37 and $2.68, respectively. 
The NASS Dairy Products report noted unadjusted February U.S. butter 
production totaled 171.2 million pounds, up 9.6 percent from a year 
ago. The Central region accounted for 41 percent (69.8 million pounds) 
of U.S. unadjusted production in February. This production is 7.8 
percent higher than one year ago. January-February cumulative U.S. 
butter production totals 346.9 million pounds, 3.3 percent ahead of 
2015 during the same time span. The CME Group monthly average price 
for Grade AA butter during March was $1.9605, compared to $1.7166 a 
year ago. Wednesday at the CME Group, Grade AA butter closed at 
$2.0800, up $0.1250 from last Wednesday. 

2016 U.S. Butter and Milkfat Exports (USDA-FAS)

                 2016 Exports      % Change From 
                 (Million Lb.)       1 Year Ago

February Total        9.0             + 61
TOTAL, JAN - FEB     14.7             + 31
 1 Mexico            11.1             +190
 2 Canada             1.2             + 60
 3 Saudi Arabia       1.1             - 70
 4 South Korea        0.2             - 34
 5 Taiwan             0.1             - 15



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