MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI. October 26, 2016 (Report 43)


Regional butter manufacturing is very active. Farm milk output 
and components are up. As a result, cream is readily available 
for churning. Most butter processors are running at full 
capacity as holiday orders continue to develop. Bulk stocks are 
heavy to moderate. Some churn operators are trying to lower 
inventories after microfixing. Spot prices at the CME group are 
starting to firm again. Print production is ongoing. Demand from 
retailers is strong as the Q4 holidays are very close. Some 
manufacturers and buyers are settling up contracts agreements 
for Q1 2017. Bulk butter prices reported ranged from one cent 
under market to 6 cents over the market, with various periods 
and averages used. The DMN National Retail Report-Dairy for 
October 21-27 noted the national weighted average advertised 
price for a 1 pound package of butter is $2.98, 31 cents below 
one week ago and 37 cents lower than one year ago. The regional 
weighted average prices in the Midwest and South Central are 
$2.85 and $2.79, respectively.  The NASS Cold Storage report 
noted U.S. butter stocks as of September 30, 2016 were 269.2 
million pounds, up 44% from last year, but down 16% from last 
month. Bulk stocks in all warehouses were 187.5 million pounds 
last year at this time. This week, a cooperative export 
assistance program accepted requests for 873,031 pounds of 
butter. So far this year, the program has accepted assistance 
requests for 10.326 million pounds of butter. Wednesday at the 
CME Group, Grade AA butter closed at $1.8850, up 13 cents from 
last Wednesday. 



1530CT Angel.Teran@ams.usda.gov 608.557.7011
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