MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI. May 11, 2016 (Report 19)


Butter churns across the Central region are active. Production is 
steady this week. Several manufacturers are microfixing butter to meet 
upcoming customer needs. As temperatures rise in the South Central 
area, the demand for cream clearing to Class II is increasing. Many 
butter manufacturers have contracted cream through Q2 and Q3 and feel 
comfortable entering the warm season. The North Central area has yet 
to reach high enough temperatures to spike ice cream sales. Cream is 
still readily available and keeping butter churns busy. Sales into 
food service decreased slightly this week in the Central region 
following the holiday weekend. Retail interest is strong. Overall, 
many industry contacts believe interest in butter is increasing and 
feel the market is typical for this time of year. A large amount of 
butter makers feel well balanced with their inventories. Bulk butter 
prices reportedly range from market to 10 cents over the market, with 
various time frames and averages used. Industry participants report 
that a plentiful supply of butter in other countries is being offered 
to American buyers. Reportedly, foreign butter manufacturers are 
pricing their product to compete with the U.S. market. The DMN 
National Retail Report-Dairy for May 6-12 noted the national weighted 
average advertised price for a 1 pound package of butter was $2.91, 
$0.12 below one week ago, and $0.18 below one year ago. The weighted 
average price in the South Central region is $2.65 with a price range 
of $2.49-$2.99. Prices in the Midwest region for 1 pound packages of 
butter range from $2.49-$3.00 with a weighted average price of $2.82. 
The NASS Dairy Products report noted March U.S. butter production 
totaled 182.0 million pounds, up 8.6 percent from a year ago. The 
Central region accounted for 40.0 percent (73.3 million pounds) of 
U.S. production in March. This production is 9.6 percent higher than 
one year ago. January-March cumulative U.S. butter production totals 
532.0 million pounds, 7.0 percent ahead of 2015 during the same time 
span. Wednesday at the CME Group, Grade AA butter closed at $2.0525, 
up $0.0225 from last Wednesday. 


1530CT Amy.L.Schmitz@ams.usda.gov 608.557.7004
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/map/da-home