MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI. November 30, 2016 (Report 48)


Butter output was very active during the past Thanksgiving weekend in 
the Central region. This week, butter production remains strong in 
order to cover the anticipated robust seasonal demand, driven by the 
year-end holiday. The high volume of orders from retailers is 
shrinking stock levels at some plants. However, inventories are 
balanced in other processing facilities. Some Class II manufacturers 
are pulling heavy cream intakes. As a result, a few butter churners 
are seeking additional spot loads of cream. Requests from food 
service are improving, as the year-end shopping season gets close. At 
this point, the market tone is firm. Today, at the CME Group, bulk 
butter spot prices shifted up, sharply. However, most industry 
contacts are anticipating the typical pre-holiday drop in prices in 
the short term. Bulk butter prices reported ranged from 4 to 8 cents 
over the market, with various periods and averages used. The DMN 
National Retail Report-Dairy for November 25 to December 1 noted the 
national weighted average advertised price for a 1 pound package of 
butter is $2.59, up $0.02 from one week ago, but $0.25 below one year 
ago. The weighted average prices in the Midwest and South Central 
regions are $2.08 and $2.48, respectively. The NASS Cold Storage 
report noted U.S. butter stocks as of October 31, 2016 were 227.7 
million pounds, up 27% from last year, but down 15% from last month. 
Bulk stocks in all warehouses were 178.8 million pounds last year at 
this time. Wednesday at the CME Group, Grade AA butter closed at 
$2.2300, up $.1825 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