MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI. May 25, 2016 (Report 21)

Production is steady this week for many butter manufacturers. Retail 
and food service demand is consistent. Some sellers report increases 
in sales due to the upcoming holiday weekend. Cream remains plentiful 
and spot loads are readily available for any interested buyer. Several 
industry participants are capitalizing on low cream prices and making 
more butter than needed for the short term. Manufacturers are also 
microfixing bulk butter to prepare for upcoming contracts and Q3/Q4. 
Overall, butter stocks are building, but remain at comfortable levels 
as warmer months approach. Despite building inventories, butter prices 
remain above $2.00. Bulk butter prices reportedly range from market to 
10 cents over the market, with various time frames and averages used. 
The market undertone is steady. The DMN National Retail Report-Dairy 
for May 20-26 noted the national weighted average advertised price for 
a 1 pound package of butter was $3.29, $0.54 above one week ago, and 
$0.52 above one year ago. The weighted average price in the South 
Central region is $3.32 with a price range of $2.99-$3.50.Prices in 
the Midwest region for 1 pound packages of butter had a weighted 
average price of $2.50. This week, a cooperative export assistance 
program accepted requests for 771,618 pounds of butter. So far this 
year, the program has accepted assistance requests for 8.488 million 
pounds of butter. The NASS Cold Storage report noted U.S. butter 
stocks on April 30, 2016 were 298.2 million pounds, 28% higher than 
April 30, 2015 and 23% higher than March 31, 2016. Wednesday at the CME 
Group, Grade AA butter closed at $2.0800, up $.0275 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