Contacts suggest the butter market is healthy

Contacts suggest the butter market is healthy

Contacts suggest the butter market is healthy
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MD_DA431
DA
MD DA431 BUTTER – CENTRAL

MADISON, WI. June 14, 2017 (Report 24)

Butter sales are strong according to Central butter producers. With
only slight exceptions, retail butter demand has outperformed
expectations for the past month. Contacts suggest the butter market
is healthy and there is little reason to expect a slowdown in the
near term. Some contacts point out that domestic buyers are not
covered for the second half of the year, therefore sales may continue
to climb. Butter production is active, as producers attempt to store
bulk butter for later in the year. Cream headed for the churns is
tightening somewhat, as the weather continues to heat up. Butter
producers report f.o.b. cream multiples in the area of 1.20. Cash
prices on the CME have surged, in line with the strengthening market.
However, contacts have suggested increasing prices may overtake
prices from global competitors. Wednesday at the CME Group, Grade AA
butter closed at $2.7000, up $0.2375 from last Wednesday. Reported
bulk butter prices are 2 to 7 cents over the market. DMN National
Retail Report-Dairy for June 9-15 noted the national weighted average
advertised price for a 1 pound package of butter is $3.46, $0.15
above one week ago and $0.13 higher than one year ago. The weighted
average regional South Central was $3.43.

 

1530CT [email protected] (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

 

Source:   Contacts suggest the butter market is healthy and there is little reason to expect a slowdown in the near term http://bit.ly/1WWHOD4

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