Butter Highlights
USDA - Fri Jun 16, 1:14PM CDT
MD DA451   
DA 
MD DA451 BUTTER HIGHLIGHTS

MADISON, WI June 16, 2017 (REPORT 24)

BUTTER HIGHLIGHTS: Butter sales are strengthening in the United 
States. In the Northeast, print retail and food service channels are 
active. In the Central, some contacts point out that domestic buyers 
are not covered for the second half of the year, therefore sales may 
continue to climb. In the West, a number of end users are willing to 
pay more in the short term to assure coverage of butter needs for Q3 
and Q4. Cream is tightening around the U.S. In the Northeast, due to 
the lower level of Class I processing as seasonal interest declines, 
some plants are securing additional cream loads when possible in the 
spot market. In the Central, cream headed into churns is tightening 
somewhat, as the weather continues to heat up. In the West, Class II 
manufacturers are pulling large volumes of cream away from butter 
churns. However, cream is still available for most processing needs. 
Butter production is mixed. Some producers are churning to store bulk 
butter for later in the year, while other processors are working to 
sell cream and slow churns. Inventories are manageable to long. The 
demand for butter is generally strong. Bulk butter prices range 3 
cents below to 7 cents over the market. The market undertone is steady 
to strengthening. Friday's CME Group cash trading saw Grade AA butter 
closed at $2.5600, up $0.0850 from last Friday. 

1200CT Jessica.Mueller@ams.usda.gov 608.422-8589
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: http://www.ams.usda.gov/market-news/dairy
Dairy Market News database portal: 
http://www.marketnews.usda.gov/mnp/da-home