MD_DA440  
DA                                                         
MD DA440 BUTTER - WEST                           

MADISON, WI.  January 7, 2015 (REPORT 1)                         

WEST BUTTER   

Western butter prices are weaker this week and look to be going 
downward.  Print butter demand has slowed but the demand for bulk 
butter is on the rise for some sellers.  Manufacturers continue to use 
on hand cream for bulk butter but are not purchasing any extra.  
Manufacturers are taking a wait and see approach in this first full 
week of the New Year to watch where the prices will go.  According to 
the NASS Dairy Products report, November butter production for the 
U.S. totals 135.5 million pounds, down 4.7% from November 2013.  
Cumulative output through November for the U.S. is 1.658 billion 
pounds, down 2.5% from the same period in 2013. November output in the 
Western region totals 66.2 million pounds, down 9.5% from November 
2013. Prices for bulk butter range from market to 3.5 cents under, 
based on the CME with various time frames and averages used. Butter 
prices at the CME Group on Wednesday closed at $1.5400, down 1.5 cents 
from a week ago.
   

1530CT Tara.Herbst@ams.usda.gov 608.278.4154
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