MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI. July 20, 2016 (Report 29)

Central region butter churns are active this week. As the Midwest 
faces rising temperatures and humidity, cream is tightening. However, 
industry contacts report that the cream supply is not as tight as they 
had anticipated for this point in the season. Due to a more readily 
available supply than some manufacturers had planned on, July butter 
production is reportedly more active than in previous years. Some 
manufacturers are content with higher production while others would 
like to be at lower churn rates. Butter inventories are mixed. A few 
market participants speculate that a large amount of butter stocks are 
committed. With seasonally abnormal churn activity, several 
manufacturers report growing butter inventories. Demand is steady to 
increasing. Buyers report difficulty finding spot loads of butter in 
the Central region despite sufficient to growing inventories. Bulk 
butter prices reported ranged from market to 7.5 cents over the 
market, with various time frames and averages used. The market 
undertone is firm. The DMN National Retail Report-Dairy for July 15-21 
noted the national weighted average advertised price for a 1 pound 
package of butter was $3.05, $0.14 below one week ago, and $0.21 below 
one year ago. The weighted average price in the Midwest region is 
$2.50. The weighted average price in the South Central region is $2.65 
with a price range of $2.50-$3.75. Wednesday at the CME Group, Grade 
AA butter closed at $2.2975, up $.0250 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