WHOLESALE BUTTER MARKETS

NATIONAL - MAY 6: Butter production is strong in the Northeast and West, while in the Central region it is steady to lower as additional cream volumes clear to Class II processing. Nationwide, butter inventories are steady to building. In the East, interest from retailers and foodservice is strong ahead of the summer and fall seasons. In the Central region, demand from food service is even. However, demand from retailers is trending sideways. In the West, sales are good for this time of year, according to some butter processors.

NORTHEAST - MAY 11: As the spring flush prompts elevated regional milk production, most area churns are operating at a steady to higher rate. Cream supplies are heavy throughout the Northeast, consequently limiting trading venues for clearing surplus cream. As a result, butter makers are routinely processing in-house cream volumes. Producers’ bulk supplies are growing, although the majority of inventory is committed for near term customer utilization. Retail demand is good for private labels. Loads moving through export channels are fair. The market undertone is unsettled.

CENTRAL - MAY 11: Several manufacturers are microfixing butter to meet upcoming customer needs. As temperatures rise in the South Central area, the demand for cream clearing to Class II is increasing. Many butter manufacturers have contracted cream through Q2 and Q3 and feel comfortable entering the warm season. The North Central area has yet to reach high enough temperatures to spike ice cream sales. Sales into foodservice decreased slightly this week in the Central region. Retail interest is strong. Overall, many industry contacts believe interest in butter is increasing and feel the market is typical for this time of year. A large amount of butter makers feel well balanced with their inventories. A plentiful supply of butter in other countries is being offered to American buyers.

WEST - MAY 11: Most manufacturers are focused on bulk butter production, but are also making some print butter to meet immediate retail needs or co-pack obligations. Processors describe retail and foodservice demand as relatively good. Industry contacts say butter is moving fairly easily through existing contracts and through further buyer inquiries.