MD_DA440  
DA                                                         
MD DA440 BUTTER - WEST                           

MADISON, WI.  March 4, 2015 (REPORT 9)
 
WEST BUTTER:

There was renewed focus this week in parts of the West, with 
manufacturing bulk butter.  Cream was moving from Arizona into 
California to facilitate increased churning of bulk butter, in 
addition to maintaining print butter volumes.  Some 
manufacturers determined that current multiples and pricing 
based off the decline in the last weekly average for butter was 
favorable to building bulk butter inventories for future use in 
the West and elsewhere in the country.  Elsewhere in the West, 
print butter churning was described as "strong" or "plugging 
along".  Some plants continue to fill orders with deliveries 
scheduled through March.  Bulk butter ranges from 4.5 cents 
under to 1 cent over the CME Group with various basing points.
The DMN National Retail Report-Dairy ads for the week of 
February 27 - March 5, shows the U.S. weighted average 
advertised retail price for a one pound pack of butter at $2.77, 
down $.41 from last week, which follows a decline of $.44 the 
previous week.  The current average price is $.20 higher than 
one year ago.  Butter ad prices averaged $2.83 in the Southwest 
and $2.99 in the Northwest.  The CME Group February 2015 monthly 
average price for Grade AA butter, $1.7293, is up $.1579 from 
January and up $.0754 from February one year ago.  The Grade AA 
butter price at the CME Group on Wednesday closed at $1.7500, up 
$.1075 from a week ago. NASS reports that January 2015 U.S. 
butter production was 179.5 million pounds, 1.6% below January 
2014 but 7.1% above December 2014.


1530CT eric.graf@ams.usda.gov 608.278.4152
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