MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI. August 16, 2017 (Report 33)

Retail and food service orders for butter have maintained consistency. Week 
after week, manufacturers report that sales numbers are at least slightly 
higher than those of 2016. As schools are nearing their return from break, 
food service expectations are strong for the near term. Adding to the 
overall demand trend, international interests are prevalent. Manufacturers 
report inquiries into unsalted loads have increased. Butter production is 
steady. Spot bulk purchases were light, as bulk butter prices remained at 
flat market to 7 cents over the CME average. Cream availability, which can 
dwindle this time of year, has not been problematic, as cream headed into 
butter churns has been steadily available. Reported cream multiples into 
Class IV production are at or around 1.24 f.o.b. CME cash prices of butter 
have been fairly consistent, with relatively small changes week over week. 
The $3.00 CME cash price expectation is not out of reach, but some contacts 
suggest with positive reports on exports earlier in the month, they would 
have expected the markets to react a little more bullishly. DMN National 
Retail Report-Dairy for August 11-17 noted the national weighted average 
advertised price for a 1 pound package of butter is $3.70, $0.13 above one 
week ago and $0.47 higher than one year ago. The weighted average regional 
prices in the Midwest and South Central were $2.89 and $3.16, respectively.
Wednesday at the CME Group, Grade AA butter closed at $2.6625, up $0.0125 
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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