MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI. December 21, 2016 (Report 51)

Central butter production is mixed this week. With sluggish cream 
interest from Class II processors, cream supplies are more available 
for churning. Therefore, some butter makers are actively churning and 
are anticipating running full production schedules over the holiday 
weekend. On the other hand, some butter manufacturers are reducing 
output rates in order to balance butter stock levels. According to 
them, the market is weak and they do not want to build large supplies 
at current prices. Print butter production is present, but is only 
made for immediate needs. Holiday orders from retailers have been 
shipped and delivered. Requests from food service are steady, but an 
uptick is expected through the yearend holidays. Bulk butter prices 
reported ranged from 2 to 6 cents over the market, with various 
periods and averages used. DMN National Retail Report-Dairy for 
December 16-22 noted the national weighted average advertised price 
for a 1 pound package of butter is $2.77, no change from one week 
ago, but $0.33 lower than one year ago. The weighted average price in 
the Midwest and South Central regions are $2.54 and $2.53, 
respectively. This week, a cooperative export assistance program 
accepted requests for 1.323 million pounds of butter. So far this 
year, the program has accepted assistance requests for 11.076 million 
pounds of butter. Wednesday at the CME Group, Grade AA butter closed 
at $2.2050, up $.1200 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