MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI. August 3, 2016 (Report 31)

Butter production in the Central region is steady this week. Cream 
remains available and manufacturers are running full schedules. Demand 
for butter remains strong. Brokers and manufacturers both report calls 
from buyers seeking loads of butter. Sales into retail and food 
service outlets are steady. However, industry contacts with butter 
stocks remain reluctant to make a spot sale. Inventories are 
comfortable for many manufacturers in the Midwest. Because production 
levels are higher than manufacturers had anticipated, some processors 
are building inventories. End users and other market participants 
report mixed inventories. Bulk butter prices reported ranged from 
market to 7.5 cents over the market, with various time frames and 
averages used. International interest is light. The market undertone 
is steady. The DMN National Retail Report-Dairy for July 29-August 4 
noted the national weighted average advertised price for a 1 pound 
package of butter was $3.21, $0.14 above one week ago, but $0.15 below 
one year ago. Prices in the Midwest region for 1 pound packages of 
butter range from $1.99-$2.50 with a weighted average price of $2.19. 
The weighted average price in the South Central region was $2.01 with 
a price range of $0.88-$2.99. The CME Group monthly average price for 
Grade AA butter during July was $2.2731, compared to $1.9056 a year 
ago. Prices on the CME Group saw a large drop in price last week but 
have made a small recovery so far this week. Wednesday at the CME 
Group, Grade AA butter closed at $2.2225, unchanged 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