MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI. February 8, 2017 (Report 6)

Cream remains readily available for Central butter producers. Butter 
makers continue to turn spot market cream away, as internal and 
contract supplies are more than sufficient. Butter production reports 
vary in the Central region. Some producers report fully active print 
production in order to build inventory as spring approaches. However, 
other butter contacts report slightly lower production levels as 
inventories are closing in on balanced levels. Reports on demand also 
vary somewhat. Some butter producers report stronger sales continuing 
from last week, while others report steady to slower sales. The 
market undertone is unsettled. DMN National Retail Report-Dairy for 
February 3-9 noted the national weighted average advertised price for 
a 1 pound package of butter is $3.64, $0.33 above one week ago, and 
$0.32 higher than one year ago. The weighted average regional prices 
in the Midwest and South Central were $2.54 and $3.39, respectively. 
The NASS Dairy Products report noted U.S. butter production during 
December 2016 in the Central region totaled 66.6 million pounds, 5.7 
percent lower than one year ago. Total U.S. butter production during 
December 2016 was 163.8 million pounds, 6.7 percent lower than last 
year. During January-December 2016, U.S. butter production totaled 
1.889 billion pounds, 2.2 percent more than the same period in 2015. 
According to FAS, January-December 2016 U.S. butter exports totaled 
55.2 million pounds, 8% above last year during the same time span. 
The CME Group monthly average price for Grade AA butter during 
January was $2.2393, compared to $2.1214 a year ago. Bulk butter 
prices reported ranged from 1 to 4 cents over the market, with 
various periods and averages used. Wednesday at the CME Group, Grade 
AA butter closed at $2.1775, down $.0625 from last Wednesday.


1530CT Israel.Weber@ams.usda.gov (608)422-8601
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