Butter - Central

MADISON, WI. January 3, 2018 (Report 1)

Butter churns are running actively this week, both in preparation for 
the spring push and due to some butter producers reporting lower end-
of-year inventories. Cream supplies also lend to the drive to produce 
more butter. With the exception of some situations, post-holiday 
loads at flat market, most reported Class IV cream multiples 
increased this week. Most reported multiples ranged from 1.05 to 1.15 
f.o.b. Butter sales are slower, but meeting seasonal expectations. As 
cheese markets attempt to locate stable ground, and dry products' 
markets continue to falter, the butter markets remain the lone 
commodity stalwart, starting 2018 in steady to bullish fashion. Bulk 
butter prices are unchanged, from 1 cent to 7 cents over the CME. The 
CME Group monthly average price for Grade AA butter during December 
was $2.2078, down from November's $2.2244, but up from $2.1763 a year 
ago. DMN National Retail Report-Dairy for December 29-January 4 noted 
the national weighted average advertised price for a 1 pound package 
of butter is $3.13, $0.08 below one week ago, but $0.44 higher than 
one year ago. The weighted average regional prices in the Midwest and 
South Central were $2.69 and $3.01, respectively. Wednesday at the 
CME Group, Grade AA butter closed at $2.2200, up $0.0175 from last 

1530CT Israel Weber - Israel.weber@ams.usda.gov
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: www.ams.usda.gov/dairymarketnews
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