MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI. May 17, 2017 (Report 20)

Butter production is active in the Central region. Some butter manufacturers 
report that for the near term they plan to build late summer/fall 
inventories. Readily available cream continues to flow into butter churns. 
Some Central butter makers report receiving discounted cream from the 
Southwestern region. Cream multiples into Class IV production have been 
reported from 1.15 to 1.20. Retail butter demand reports varied from contact 
to contact. Some are seeing better-than-expected sales numbers, while others 
report a seasonal slowdown. Butter prices on the CME spot market surged late 
last week and into this week. Some contacts suggest a global tightness on 
milk fat has some buyers purchasing butter ahead of an increasing export 
demand. Reported bulk butter prices are 2 to 7 cents over the market. DMN 
National Retail Report-Dairy for May 12-18 noted the national weighted 
average advertised price for a 1 pound package of butter is $3.35, $0.50 
above one week ago and $0.60 higher than one year ago. The weighted average 
regional prices in the Midwest and South Central were $3.00 and $2.90, 
respectively. This week, a cooperative export assistance program accepted 
requests for 220,462 pounds (100 metric tons) of butter. So far this year, 
the program has accepted assistance requests for 2.1 million pounds of 
butter. Wednesday at the CME Group, Grade AA butter closed at $2.3450, up 
$0.2150 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-
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