MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI. August 17, 2016 (Report 33)

Butter churns are slowing for some manufacturers in the Central region 
this week. Milk intakes are falling and production schedules are less 
active for several processors. However, some manufacturers are 
maximizing intakes and are keeping production schedules as full as 
possible. While milk intakes are down, cream remains available in the 
Central region. Several manufacturers report purchasing spot loads of 
cream this week to fill churns. A few manufacturers are microfixing 
bulk butter for upcoming commitments and anticipate growth in demand 
as Midwest schools begin again. Demand is steady from retail and food 
service outlets. A few buyers seeking butter, who had little success 
in previous weeks, were able to make purchases this week. Bulk butter 
prices reported ranged from market to 7.5 cents over the market, with 
various time frames and averages used. Inventories are comfortable to 
long in the Central region. There is little international involvement 
in the current market. The market undertone is steady. The DMN 
National Retail Report-Dairy for August 12-18 noted the national 
weighted average advertised price for a 1 pound package of butter was 
$3.23, $0.24 above one week ago, and $0.12 above one year ago. Prices 
in the Midwest region for 1 pound packages of butter range from $2.99-
$3.49 with a weighted average price of $3.26. The weighted average 
price in the South Central region was $3.04 with a price range of 
$2.50-$3.50. Wednesday at the CME Group, Grade AA butter closed at 
$2.2025, down $.0175 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