MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI. July 13, 2016 (Report 28)

Butter churns are busy in the Central region. Many manufacturers are 
running full schedules. However, a few butter makers are taking 
measures to slow down butter production. Cream is reportedly 
tightening after a short-lived increase in supply from the holiday 
weekend. Several butter makers report being able to find additional 
loads of cream with more ease than they had anticipated for this time 
of year. Some market participants are bringing in loads of cream from 
other regions where cream is more readily available. A few 
manufacturers are microfixing butter for upcoming contracts and 
anticipated sales. Spot sales of bulk butter are intermittent. Some 
buyers report little to no opportunity to purchase bulk butter. A few 
industry participants speculate brokers and manufacturers who 
currently have butter inventories are comfortable sitting on their 
stocks, as they believe prices on butter will firm throughout Q3. 
Overall, butter inventories in the Central region are mixed. Bulk 
butter prices reported ranged from market to .0750 cents over the 
market, with various time frames and averages used. The market 
undertone is firm. The DMN National Retail Report-Dairy for July 8-14 
noted the national weighted average advertised price for a 1 pound 
package of butter was $3.19, $0.19 below one week ago, but $0.17 above 
one year ago. Prices in the Midwest region for 1 pound packages of 
butter range from $1.77-$3.49 with a weighted average price of $2.81. 
The weighted average price in the South Central region is $2.49. This 
week, a cooperative export assistance program accepted requests for 
1.598 million pounds of butter. So far this year, the program has 
accepted assistance requests for 6.949 million pounds of butter. 
Wednesday at the CME Group, Grade AA butter closed at $2.2725, down 
$.0100 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