MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI. August 24, 2016 (Report 34)

Butter production is active this week in the Central region. Industry 
contacts feel spot loads of cream are still available, but less 
obtainable than in recent weeks. A few manufacturers who were 
previously selling loads of cream are now holding on and processing 
all contracted cream loads in order to keep churns full. Other 
manufacturers are slowing the churns slightly. Demand is strong. 
Market participants report growing demand from food service and retail 
outlets. Some contacts speculate some of the recent spark in demand 
can be attributed to schools going back into session. Many 
manufacturers feel comfortable entering the busy season with current 
inventory levels. Some manufacturers are microfixing for upcoming 
orders. 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 
August 19-25 noted the national weighted average advertised price for 
a 1 pound package of butter was $3.41, $0.18 above one week ago, and 
$0.43 above one year ago. The weighted average price in the Midwest 
region is $3.49. The weighted average price in the South Central 
region was $3.69 with a price range of $3.49-$3.99. The NASS Cold 
Storage report noted U.S. butter stocks on July 31, 2016 were 333.1 
million pounds, up 31 percent from a year ago and 2 percent higher 
than last month. Wednesday at the CME Group, Grade AA butter closed at 
$2.0775, down $.1250 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