MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI. June 28, 2017 (Report 26)

The status quo for butter production, in general, remains mostly active with 
moderate clearance, as the balance of output moves into storage. Salted 
butter supplies are adequate but unsalted volumes are considered tight in 
some channels. Manufacturers expect increased butter production as some 
cream plants close for the July 4 holiday. However, the market is preparing 
for lower trending milk production and butterfat declines to deter available 
cream. Hence, in the next few weeks, the producers expect that cream will be 
readily absorbed into Class II ice cream operations, prompting reductions in 
churning rates, which is typical for this time of year. Some buyers note 
this as a cause of the premium butter price. Bulk butter prices linger at 4 
to 7 cents over the market as some sources note purchases of fresh butter, 
as opposed to frozen, at the lower end of market prices. With current 
interest at good to moderate levels, there are indications of a downturn in 
orders this week that the market attributes to the upcoming holiday. Sales 
levels will likely readjust next week, subsequent to buyers' assessments of 
post-holiday inventories. The market undertone is steady as prices continue 
to firm. 


Wednesday at the CME Group, Grade AA butter closed at $2.6400, up $0.0550 
from last Wednesday. 

The DMN National Retail Report-Dairy, for June 23-29, noted the national 
weighted average advertised price for a 1 pound package of butter is $3.16, 
$0.23 below one week ago, but $0.14 higher than one year ago. The weighted 
average regional prices in the Midwest and South Central were $2.73 and 
$2.49, respectively. 

The NASS Cold Storage report noted U.S. butter stocks as of May 31, 2017 
were 313.6 million pounds, down 3 percent from last year, but up 7 percent 
from last month. Bulk stocks in all warehouses were 324.9 million pounds 
last year at this time.



1530CT daniel.johnson@ams.usda.gov (608)422-8605
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