MD_DA431
DA
MD DA431 BUTTER - CENTRAL *UPDATED

MADISON, WI. March 22, 2017 (Report 12)

Butter production is active across the Central United States. Class 
IV spot cream multiples are in the 1.05 to 1.15 range, but many 
butter makers' needs are being met through contracts. Class II 
interest in cream has yet to affect butter makers' accessibility. 
Butter demand reports vary from fair to strong. Some contacts suggest 
recent butter related news articles have prompted some uptick in 
ordering. Producers are building butter supplies when increased 
demand and contractual obligations allow. CME butter prices averaged 
$2.1465 last week, $.2075 higher than the same week in 2016. The 
butter market tone remains steady. DMN National Retail Report-Dairy 
for March 17-23 noted the national weighted average advertised price 
for a 1 pound package of butter is $3.24, $0.06 above one week ago 
and $0.17 higher than one year ago. The weighted average regional 
prices in the Midwest and South Central were $2.50 and $2.99, 
respectively. Bulk butter prices reported ranged from 1 to 7 cents 
over the market, with various periods and averages used. *The NASS 
Cold Storage report noted U.S. butter stocks as of February 28, 2017 
were 282.6 million pounds, up 20% from last year and up 28% from last 
month. Bulk stocks in all warehouses were 235.6 million pounds last 
year at this time. Wednesday at the CME Group, Grade AA butter closed 
at $2.1200, down $.0300 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