MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI. September 6, 2017 (Report 36)

Butter makers are continuing to take advantage of favorable cream 
prices. Cream multiples into Class IV plants were reported at 1.20-
1.22 f.o.b. With available cream, butter production continues apace 
as peak demand season draws near. Central region butter producers 
report that retail/print sales are strong. Food service has picked up 
also, as most schools have reopened in the Midwest. Reported bulk 
butter prices ranged from 1.5 to 7 cents above the CME average. 
Market undertones are a little less steady. Although the CME butter 
price is disposed to fluctuations, Tuesday's CME price was the lowest 
showing since June 1, 2017. The NASS Dairy Products report noted U.S. 
butter production during July 2017 in the Central region totaled 57.6 
million pounds, 9.4 percent higher than one year ago. Total U.S. 
butter production during July 2017 was 137.3 million pounds, 1.6 
percent higher than last year. January through July 2017 U.S. butter 
production totaled 1.118 billion pounds, 1.4 percent lower than the 
same period in 2016. The CME Group monthly average price for Grade AA 
butter during August was $2.6473, up from July's $2.6195 and up from 
$2.1776 a year ago. DMN National Retail Report-Dairy for September 1-
7 noted the national weighted average advertised price for a 1 pound 
package of butter is $3.56, $0.04 above one week ago, but $0.28 lower 
than one year ago. The weighted average regional prices in the 
Midwest and South Central were $3.19 and $3.09, respectively.
Wednesday at the CME Group, Grade AA butter closed at $2.4400, down 
$0.1550 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-home