MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI. July 27, 2016 (Report 30)

Butter production is steady this week. Manufacturers are running at or 
near full schedules. Cream is available on the spot market and several 
manufacturers are capitalizing on that, maxing out production 
schedules. A few processing facilities experienced down time for 
maintenance last week, but are back up and running. Those 
manufacturers are running full schedules this week to lessen the 
production losses from last week. Demand is solid. Manufacturers 
report buyers requesting additional loads outside of contracts and 
calls from new buyers looking to make a purchase. However, market 
participants report not always being able to meet buyers' needs, 
especially for fresh bulk butter. Bulk butter prices reported ranged 
from market to 7.5 cents over the market, with various time frames and 
averages used. Inventories are mixed. Industry contacts who have 
comfortable to heavy butter stocks report little spot market 
availability for the time being. The market undertone is firm. The DMN 
National Retail Report-Dairy for July 22-28 noted the national 
weighted average advertised price for a 1 pound package of butter was 
$3.07, $0.02 above one week ago, but $0.22 below one year ago. There 
were no reported ads for 1# packages of butter in the Midwest. The 
weighted average price in the South Central region was $3.25 with a 
price range of $3.00-$3.50. The NASS Cold Storage report noted U.S. 
butter stocks on June 30, 2016 were 326 million pounds, up 27% from a 
year ago and unchanged from last month. Wednesday at the CME Group, 
Grade AA butter closed at $2.2225, down $.0750 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