MD_DA431 DA MD DA431 BUTTER - CENTRAL MADISON, WI. January 4, 2016 (Report 1) Central butter production levels are active due to the availability of cream following the holiday season. With many schools reopening their doors this week, butter producers face readily available cream coming from bottlers. A large volume of this cream is clearing into churns. Nevertheless, with lower AMF supplies in the region, some Class II processors are starting to pull more cream out of the churns. Retail butter demand is seasonally slow, while food service remains steady to slightly slower. Most butter processors are focusing on bulk production. However, print output is active in a few processing facilities as the Super Bowl approaches. Inventories are steady to building into cold storage. DMN National Retail Report- Dairy for December 30-January 5 noted the national weighted average advertised price for a 1 pound package of butter is $2.69, $0.09 above one week ago, but $0.31 lower than one year ago. The weighted average prices in the Midwest and South Central regions are $2.22 and $2.99, respectively. Bulk butter prices reported ranged from 2 to 6 cents over the market, with various periods and averages used. The CME Group monthly average price for Grade AA butter during December was $2.1763, compared to $2.3318 a year ago. Wednesday at the CME Group, Grade AA butter closed at $2.2600, down $.0500 from last Wednesday. 1530CT Angel.Teran@ams.usda.gov 608.557-7011 Israel.Weber@ams.usda.gov USDA/AMS/Dairy Market News, Madison, Wisconsin Dairy Market News website: www.ams.usda.gov/dairymarketnews Dairy Market News database portal: http://www.marketnews.usda.gov/mnp/da-home