Butter - Central
USDA - Wed Mar 07, 3:03PM CST
MD_DA431

     Butter - Central U.S.

     Report 10 - Released on March 07, 2018

     Butter markets are making their mark on the entire dairy industry, as widespread analyses
     and reports are promulgating the vitality of butter, particularly in relation to other
     dawdling dairy commodities. Central region butter contacts are pointing to the CME new crop
     butter requirement as a spur in the current uptrend in trades and prices. Some Central
     region analysts have suggested that butter markets will cool shortly. Regardless, a number
     of contacts expect butter to maintain fairly steady price points between $2.00 and $2.25,
     pointing to bullish futures and increasing demand. Bulk butter is available for Central end
     users, particularly from the Western region. Micro-fixing has increased as cream prices have
     been driven up by Class II and Class III manufacturing needs. Reported cream prices into
     butter churns range from 1.14 to 1.22. Next week is expected to be the last week of firming
     cream prices ahead of spring demand upticks. Contacts are questioning how far cream prices
     will decrease, if at all, in upcoming weeks.

     DMN National Retail Report-Dairy for March 2-8 noted the national weighted average
     advertised price for a 1 pound package of butter is $3.56, $.20 below one week ago, but
     $.52 above one year ago.

     Bulk butter prices ranged from flat market to 7 cents over the CME average.
     Prices for: Central U.S., All First Sales, F.O.B., Grade AA, Conventional, and Edible Butter

     Bulk Basis Pricing  - 80% Butterfat $/LB:              0.0000 - +0.0700


     Information for the period March 5 - 9, 2018, issued weekly

     Secondary Sourced Information:

     The CME Group monthly average price for Grade AA butter during February was $2.1211, down
     from January´┐Żs $2.1587 and down from $2.1534 a year ago.

     In CME Group trading Wednesday , Grade AA butter closed at $2.2300, up $.0525 from last
     Wednesday.

     The NASS Dairy Products report noted U.S. butter production during January 2018 in the
     Central region totaled 75.7 million pounds, 0.4 percent higher than one year ago. Total U.S.
     butter production during January 2018 was 185.5 million pounds, 4.3 percent higher than
     last year.
     Published by:
     Dairy Market News - Madison, WI
     ISRAEL WEBER, 608-422-8601
     Email: israel.weber@ams.usda.gov

     Additional Dairy Market News Information:
     Dairy Market News (DMN) by Phone: 608-422-8602
     DMN Website: http://www.ams.usda.gov/market-news/dairy
     DMN Database Portal: http://www.marketnews.usda.gov/mnp/da-home