MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI. July 26, 2017 (Report 30)

Some Midwestern butter producers report that current sales have improved 
from last year, both in retail and more noticeably in the food service 
sector. Cream continues to be available for butter production at reasonable 
multiples, at or around 1.20 f.o.b. Butter makers are attempting to fit in 
maintenance/updates to plants, prior to the hectic fall season rush. Some 
contacts suggest butter market prices will continue to maintain and/or 
increase. They propose current conditions, including the global milkfat 
shortage and the positive public health views of butter, will sustain a 
market price in the current $2.50-$2.70 range. Contacts point out that 
current butter market prices are at or ahead of where they were in 2014 and 
2015, when the CME butter price broke the $3.00 threshold by late September, 
in both years. Wednesday at the CME Group, Grade AA butter closed at 
$2.6075, down $0.0250 from last Wednesday. The NASS Cold Storage report 
noted U.S. butter stocks as of June 30, 2017 were 310.1 million pounds, down 
5 percent from last year and down 1 percent from last month. Bulk stocks in 
all warehouses were 328.1 million pounds last year at this time. DMN 
National Retail Report-Dairy for July 21-27 noted the national weighted 
average advertised price for a 1 pound package of butter is $3.22, $0.31 
above one week ago and $0.15 higher than one year ago. The weighted average 
regional prices in the Midwest and South Central were $3.15 and $2.99, 
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-
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