MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI. June 14, 2017 (Report 24)

Butter sales are strong according to Central butter producers. With 
only slight exceptions, retail butter demand has outperformed 
expectations for the past month. Contacts suggest the butter market 
is healthy and there is little reason to expect a slowdown in the 
near term. Some contacts point out that domestic buyers are not 
covered for the second half of the year, therefore sales may continue 
to climb. Butter production is active, as producers attempt to store 
bulk butter for later in the year. Cream headed for the churns is 
tightening somewhat, as the weather continues to heat up. Butter 
producers report f.o.b. cream multiples in the area of 1.20. Cash 
prices on the CME have surged, in line with the strengthening market. 
However, contacts have suggested increasing prices may overtake 
prices from global competitors. Wednesday at the CME Group, Grade AA 
butter closed at $2.7000, up $0.2375 from last Wednesday. Reported 
bulk butter prices are 2 to 7 cents over the market. DMN National 
Retail Report-Dairy for June 9-15 noted the national weighted average 
advertised price for a 1 pound package of butter is $3.46, $0.15 
above one week ago and $0.13 higher than one year ago. The weighted 
average regional South Central was $3.43.



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