Who wants cream? Butter churners are selling fat for better profit margins
Churning schedules have slowed in the Northeast but remain strong in the Central states.
Butter prices in the Northeast fell 45 cents in a week to $2.96 a pound
Some Central region butter producers delay orders and divert milk into cheese
Western butter churners see prices moving higher
WEST. West butter contacts are comfortable with current inventories. Domestic demand remains good and prices have moved higher. Manufacturers have adjusted production to meet their current needs, maintain inventories, and take advantage of opportunities to sell cream. Some butter makers report slowing or temporarily suspending production, while others have shifted more production to print butter instead of bulk. Most industry contacts say there is still considerable demand for cream and good returns from cream sales. The DMN National Retail Report–Dairy for the week July 24 – 30, found that the U.S. weighted average advertised price of 1 pound butter is $3.29, up $.03 from one week ago but down $.20 from one year ago. In the Southwest, the weighted average advertised price for 1 pound butter was $3.86 with a price range of $2.99 - $5.49, and in the Northwest, $3.47 with a price range of $2.50 - $3.99. Bulk butter pricing in the West this week is 4 cents under market to 5 cents above, based on the CME Group with various time frames and averages used. The Grade AA butter price at the CME Group on Wednesday closed at $1.9075, up $.0325 from a week ago.