MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI. July 5, 2017 (Report 27)

Butter production is active. Producers report storing butter for 
upcoming upticks in demand. Currently, retail and food service demand 
is meeting seasonal expectations. Butter inventories are building and 
producers are comfortable with current levels generally. However, 
some producers report that unsalted inventories are a bit light, 
whereas salted stores are adequate for contractual and spot needs. 
Bulk butter prices range from 1.5 to 7 cents over the market price. 
Cream is available for butter makers this week, primarily due to the 
holiday. However, butter contacts expect cream to resume its recent 
tightness post-holiday, when other processing plants go back to 
regular schedules. Central cream multiples, headed into butter 
churns, were reported at around 1.20. The butter market tone is 
steady. CME prices, although bouncing up and down a bit day over day, 
are maintaining an average price that butter contacts find 
comfortable. Wednesday at the CME Group, Grade AA butter closed at 
$2.6450, up $0.0050 from last Wednesday. The CME Group monthly 
average price for Grade AA butter during June was $2.5688, up from 
May's $2.2684 and up from $2.2640 a year ago. DMN National Retail 
Report-Dairy for June 30-July 6 noted the national weighted average 
advertised price for a 1 pound package of butter is $3.86, $0.70 
above one week ago and $0.48 higher than one year ago. The weighted 
average regional prices in the Midwest and South Central were $2.99 
and $3.66, respectively.


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